Aligarh: A suspected financial fraud involving approximately ₹37 lakh in house tax collection has come to light at the Aligarh Municipal Corporation in Uttar Pradesh. Seven outsourced employees are accused of collecting property tax from homeowners but failing to deposit the money into the municipal corporation’s account. Instead, they allegedly manipulated payment records and issued fake receipts to taxpayers. A three-member inquiry committee identified nearly 400 cases of suspected financial irregularities. The municipal administration has terminated the services of all seven employees and initiated the process of filing a First Information Report (FIR) against them.
A complaint has been submitted to the Civil Lines police station in connection with the alleged fraud. The accused include employees responsible for collecting house tax and computer operators deployed in the offices of the Tax Assessment Officer, Health Department and House Tax Department. Six employees were dismissed in September following the initial inquiry, while the services of the seventh employee were terminated on Friday. The municipal corporation has also directed that all seven employees be blacklisted to prevent their future deployment within the department.
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Fraud Uncovered After Taxpayers Filed Complaints
The municipal corporation’s House Tax Department had provided outsourced employees with electronic point-of-sale (e-POS) machines to facilitate property tax collection. Their responsibility was to visit households, collect property taxes from homeowners and issue payment receipts.
However, the employees allegedly misused this system. After collecting money from property owners, they allegedly retained the amount instead of depositing it into the government account. At the same time, payment entries were reportedly manipulated to make it appear that the dues had been cleared, allowing the employees to issue receipts to unsuspecting taxpayers.
The alleged fraud came to light when several homeowners who had already paid their house tax received fresh bills showing their previous dues as outstanding. When the taxpayers presented their payment receipts, they discovered that the corresponding amounts had never been deposited into the municipal corporation’s account. As a result, some taxpayers faced the possibility of having to pay the same amount again.
Following repeated complaints, the municipal administration constituted a three-member committee to investigate the matter. The committee examined payment records and complaints submitted by taxpayers. Its inquiry reportedly uncovered financial discrepancies in nearly 400 cases, involving approximately ₹37 lakh. Based on the findings, departmental action was initiated against the employees concerned.
Six Employees Dismissed Earlier, Seventh Removed on Friday
Following the preliminary inquiry, the municipal corporation terminated the services of six outsourced employees in September. They included computer operators Shubham Saxena and Amit Kumar, call taker Pankaj Kumar, bill distributor Prashant Kumar, and Sumeet Saini and Manish Kumar.
Subsequently, computer operator Ashish Kumar was also dismissed on Friday based on the findings of the investigation. With this action, the services of all seven employees accused in the case have been terminated.
The municipal administration has directed that none of the employees should be deployed in the municipal corporation in the future. Instructions have also been issued to include them on a blacklist to prevent their reappointment or redeployment.
Officials have treated the allegations of forgery in government records, misappropriation of public funds and financial irregularities as serious matters. Further legal action is being pursued on the basis of the departmental inquiry.
FIR Process Initiated Against All Seven Employees
Municipal Commissioner Prem Prakash Meena directed officials to initiate the process of registering an FIR against all seven employees. Following these instructions, Tax Superintendent Bechan Prasad submitted a complaint at the Civil Lines police station.
The police are expected to proceed with the necessary legal formalities following the submission of the complaint. The allegations concern the suspected misappropriation of public money and manipulation of official payment records.
The municipal commissioner stated that departmental action had been taken against the outsourced employees based on the inquiry findings. He also made it clear that the employees would not be deployed in the municipal corporation in the future.
The alleged fraud has raised questions about the monitoring and verification mechanisms used in the municipal corporation’s house tax collection system. Despite the use of e-POS machines, the alleged discrepancies indicate that amounts collected from taxpayers may not have reached the official account even when payment records showed the dues as cleared.
The investigation into nearly 400 suspected cases has prompted the municipal administration to take departmental action and initiate legal proceedings. The allegations against the seven employees and the extent of their individual responsibility will ultimately be determined through the police investigation and the applicable legal process.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
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