Raipur: Action has intensified in a major financial scam linked to overtime payments in Chhattisgarh, with seven individuals, including top executives of private companies, arrested in connection with the case. Investigations have revealed that crores of rupees were released under the pretext of overtime payments to employees through a government-linked entity, but a significant portion of the funds was allegedly siphoned off through fraudulent billing and illegal commissions.
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₹115 Crore Disbursed Through Overtime Payment
According to officials, the case is linked to the Chhattisgarh State Marketing Corporation Limited (CSMCL), where nearly ₹115 crore was disbursed to various manpower agencies between 2019–20 and 2023–24 in the name of overtime payments. However, investigators allege that large-scale irregularities were committed in processing these payments, and the full amount never reached the actual workers.
The probe has uncovered that directors and officials of the accused companies allegedly colluded to generate fake overtime bills. These bills lacked proper documentation related to employee attendance, work records, and payment details. Despite the absence of valid records, substantial funds were approved and released, which were later distributed as commissions among those involved.
The arrested individuals include senior executives and directors associated with multiple private manpower firms. Authorities believe that their coordinated role was crucial in executing the fraudulent billing system and diverting government funds.
In addition, businessman Anwar Dhebar had already been arrested earlier in connection with the case and remains in judicial custody in other matters as well. Investigators suspect that the scam operated at multiple levels and involved a wider network of individuals, some of whom are yet to be identified.
Fake Bills, Inflated Claims and Illegal Commissions
The case first came to light after the Enforcement Directorate (ED) unit in Raipur seized ₹28.8 lakh in cash from three individuals in November 2023. Based on these inputs, a formal case was registered at the state level, triggering a detailed investigation into the financial transactions and billing processes.
According to investigators, the accused manipulated the overtime payment mechanism by creating inflated and fake claims. A portion of the siphoned funds was allegedly distributed as illegal commissions to certain associated individuals, while a large share was retained by the companies themselves. This systematic diversion of funds resulted in significant losses to the state exchequer.
Preliminary findings suggest that the scam involved deliberate manipulation of administrative and financial procedures. By exploiting loopholes in the payment approval system, the accused were able to pass fraudulent claims without detection for a prolonged period. Officials say this points to a well-organised financial fraud rather than isolated irregularities.
Such scams highlight critical gaps in monitoring and auditing mechanisms within government-linked financial systems. The absence of robust digital verification, real-time tracking, and audit trails often enables such large-scale frauds to go undetected until substantial losses occur.
Focus on Wider Network and Fund Trail
Authorities have presented the accused before a special court, which has remanded them for further interrogation. During the remand period, investigators are expected to examine the preparation of fake bills, the distribution of commissions, utilisation of funds, and the involvement of additional beneficiaries in the network.
Officials have stated that the investigation is ongoing and more revelations are likely in the coming days. Efforts are also underway to identify other individuals who may have played a role in facilitating or benefiting from the scam.
