A ₹98 crore fraud involving a fake employee ID has surfaced in Bhagalpur’s education department, prompting a police probe.
How Was the ₹98 Crore Fraud Carried Out?
Bhagalpur. Investigators have uncovered an alleged ₹98 crore financial fraud involving a fictitious special teacher identity created under the name ‘Tanushree’ in the district education department.
The investigation has brought former District Programme Officer (DPO) Shashi Chandan Chaudhary and others under scrutiny. A complaint had earlier been filed against Chaudhary, computer operator Avinash Raj, accountant Kajal and accounts in-charge Shishir Jha.
According to the investigation, the fraudulent identity was created on the education department’s Human Resource Management System (HRMS) portal in April 2025. It was linked to a forged PAN card, a fake Permanent Retirement Account Number (PRAN) and a bank account.
Investigators found that ordinary salary payments amounting to approximately ₹7 lakh were initially processed through the account. Subsequently, the portal’s editing facility was allegedly misused to authorise substantially larger transfers.
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How Was HRA Increased to 2,000%?
The investigation revealed that the house rent allowance (HRA) attached to the fictitious employee identity was increased to approximately 2,000% of the basic salary.
Under Bihar government rules, even cities such as Patna, classified in the ‘Y’ category, have a maximum HRA rate of 20%.
Investigators believe the unusually inflated allowance enabled transactions totalling approximately ₹98 crore through a single employee identity.
Technical examination also indicated that the HRMS salary payment system has restricted approval controls. After data is entered by the maker, final checking and digital approval are reserved for the DPO establishment.
According to investigators, a new employee identity cannot be created, nor can salary details be modified, without the DPO’s credentials and digital signature.
Where Did the Money Go?
Financial tracing indicated that money withdrawn from the government account was initially transferred to a bank account in Faridabad, Haryana, where Avinash Raj’s relatives reportedly reside.
The funds were subsequently transferred back to Bhagalpur. Investigators identified substantial transactions involving accounts belonging to Avinash’s wife Kajal and another individual, Gautam Kumar.
The investigation also found that a four-wheeler was purchased from the alleged proceeds through a local automobile agency, while substantial cash withdrawals were made through ATMs.
Sources said a special police team detained Avinash Raj and former DPO Shashi Chandan Chaudhary for questioning. However, senior police officials had not officially confirmed their arrest.
What Has the Investigation Revealed?
One significant finding concerns the continued use of the former DPO’s system credentials after his removal from the position in June 2026.
Investigators are examining why the login remained operational and why it was not immediately blocked. The HRMS investigation team from Patna subsequently froze approximately ₹46 lakh across several bank accounts, and a case was registered at Jogser police station.
However, when police accompanied by the district education office staff visited the department, several important files connected with the investigation were found missing.
Police are now conducting forensic examinations of the former DPO’s computer, IP address, login records, approval logs and digital signatures.
Investigators are also examining whether additional fictitious employee identities were created to divert government funds. The missing records and continued access to official credentials have become central issues in the investigation.
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