CHITRAKOOT | Bureau Report: A massive ₹43.13 crore treasury fraud in Uttar Pradesh’s Chitrakoot district has exposed a sophisticated network of corruption and collusion within the state’s pension disbursement system. Investigators say the accused created parallel pension accounts under the names of retired government employees and siphoned off crores of rupees in connivance with officials from both the treasury and local banks.
According to the Special Investigation Team (SIT), the fraudsters were highly organized — opening multiple bank accounts using the names of relatives, acquaintances, and even deceased pensioners. Once the accounts were activated, they systematically transferred pension funds from the district treasury, withdrew the money, and distributed it among members of the racket.
New Arrests Deepen the Case
The police on Saturday arrested two more individuals — Deepak Pandey and Ranvijay Yadav — bringing the total number of accused to 99. Both were found to be non-pensioners and were not among the 97 individuals earlier charged in the case.
Investigations revealed that Pandey and Yadav managed the bank accounts of real pensioners such as Maa Lakshmi and Sahodra Devi, among others. With alleged collusion from treasury and bank officials, they opened new accounts in their own names, transferring government pension payments into these accounts. To avoid suspicion, the duo regularly paid small sums to the genuine pensioners, creating the illusion of normalcy while diverting large portions of the funds.
SIT Uncovers More Suspicious Accounts
On Sunday, the SIT, led by Circle Officer (City) Arvind Verma and Assistant Officer Ajit Pandey, conducted a detailed audit of account records and pension files. The team questioned 10 pensioners and uncovered at least 10 additional suspicious accounts, where treasury funds were being credited even though the account holders were not pensioners.
Officials said these findings indicate a much larger web of complicity, involving intermediaries, treasury personnel, and possibly bank employees. “Document verification is revealing new links every day. The number of accused is likely to rise,” Verma said.
Bank–Treasury Nexus Suspected
Retired SBI manager Ravindra Kumar Pandey noted that such a scheme would be impossible without insider involvement.
“Opening an account under another person’s name is relatively easy, but transferring pension funds from the treasury requires coordination with officials. This suggests that some employees in both the treasury and banks were cooperating with the accused,” he said.
Scope of the Investigation
Total Fraud Amount: ₹43.13 crore
Current Accused: 99 (including 4 departmental officials, 93 pensioners and aides, and 2 new suspects)
Additional Suspects: 10 more under investigation
Modus Operandi: Fake pension accounts opened and linked with treasury payment systems
Lead Agency: Special Investigation Team (SIT), Chitrakoot
Widening of Probe
Senior Superintendent of Police (SSP) Satyapal Singh confirmed the widening scope of the probe.
“Ninety-nine individuals have been formally charged so far. Ten more are under the scanner. As the investigation progresses, more names are likely to emerge,” he said.
Experts warn that weak audit controls and lack of digital verification between banks and treasury systems have created loopholes easily exploited by insider-led rackets. As the SIT digs deeper, the Chitrakoot scam may prove to be one of Uttar Pradesh’s largest pension-related financial frauds in recent years.
