Kanpur: In a major crackdown on financial irregularities in rural development works, the district administration has dismissed a block coordinator from Ghatampur for allegedly siphoning off over ₹2.5 crore through a fake firm. The action was taken during a District Sanitation Committee meeting, signaling stricter oversight of financial transactions and execution of development projects at the panchayat level.
Fake Firm at the Center of the Fraud
Investigations revealed that the accused had floated his own firm, “AV Construction,” and used it to secure and execute development works across multiple gram panchayats. Over the years, payments worth crores were routed to this firm. Officials said the firm was registered in the name of Ritwij Trivedi and received substantial payments from various panchayat bodies, in clear violation of government norms.
Authorities also noted that employees associated with the Panchayati Raj system are prohibited from creating firms in their own or relatives’ names to undertake government contracts. The case is being treated as a serious breach of administrative and financial rules.
Taking note of the gravity of the case, the administration has ordered a detailed probe into 10 major works executed through the firm. These include construction of individual toilets, drains, roads, brick paving (kharanja) and operations of RRC centers under schemes such as Swachh Bharat Mission (Rural), State Finance Commission and Central Finance Commission.
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Digital Audit Exposes Fund Diversion
The inquiry team examined financial transactions using data from the e-Gram Swaraj portal and GST filings. It was found that payments released by gram panchayats were directly transferred into the firm’s accounts. Officials also indicated that the role of other employees may be under suspicion, although no direct punitive action has yet been taken against panchayat secretaries.
Wider Accountability Measures and Expanding Probe
However, in view of administrative lapses and lack of oversight, salaries of 25 gram panchayat secretaries for the month of February have been withheld. Additionally, adverse entries have been issued against secretaries of Raha and Bibipur gram panchayats—identified as Jaiprakash and Divyanshu Pandey—highlighting accountability measures being tightened.
Sources suggest that the case also involves elements of familial collusion. It is alleged that the dismissed block coordinator’s brother, posted in a similar role in another block, and his sister-in-law, a gram panchayat secretary, coordinated to manipulate contracts and divert government funds. Such arrangements allegedly undermined transparency and bypassed established procedures in the execution of development schemes.
Officials believe that such irregularities not only lead to misuse of public funds but also compromise the quality and transparency of grassroots development works. The administration is treating this case as a precedent to deter similar practices in the future.
A district-level probe team comprising officials from multiple departments had been constituted to examine payment processes, work quality and operational aspects of the firm. The matter has been taken based on findings of this detailed investigation.
Further inquiries are underway to identify the involvement of other employees and beneficiaries linked to the transactions. Officials have made it clear that if more names emerge during the probe, strict action will follow.
The administration has reiterated that financial misconduct at the panchayat level will not be tolerated and that stringent measures will continue to ensure accountability and transparency in the implementation of rural development schemes.
