Lucknow: A major financial irregularity has surfaced at a private firm in the city, where an assistant manager and a senior executive have been accused of embezzling ₹4.73 crore over several years. The case has been registered at Vibhutikhand police station following a complaint that pointed to systematic diversion of funds meant for vendors and farmers.
Audit flags discrepancies in vendor and farmer payments
According to the complaint, the alleged fraud came to light during an internal audit conducted on 4 February 2026 for the financial year 2025–2026. The audit reportedly uncovered discrepancies in payment records, revealing that funds intended for legitimate beneficiaries were being transferred to unrelated bank accounts. This triggered a detailed internal review, which brought multiple irregular transactions under scrutiny.
The complainant stated that both accused officials had been associated with the company for several years and were entrusted with key financial and administrative responsibilities. One had joined in August 2014, while the other had been working with the firm since May 2017. Their long tenure and access to financial systems allegedly enabled them to carry out the irregularities without immediate detection.
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Farmer accounts manipulated to divert funds
During the course of the internal investigation, it was found that payments to vendors and farmers were being partially diverted. In several cases, the money did not reach the intended recipients, raising suspicions about manipulation within the accounting process. The audit team identified patterns suggesting that a portion of transport charges was siphoned off systematically.
The complaint further alleges that around 390 vendor accounts were affected, with approximately 0.4 percent of transport-related payments being misappropriated. Over time, these small deductions accumulated into a significant amount. Investigators believe that the method used allowed the accused to avoid immediate suspicion, as individual discrepancies appeared minor in isolation.
Admissions, leave period, and police investigation
Another critical finding during the probe was related to farmer payment records. The company, which regularly disburses payments to nearly 4000 farmers, maintains detailed documentation of beneficiary accounts. However, the audit reportedly revealed that in at least 15 cases, the bank account numbers listed against farmers’ names were actually linked to the accused individuals. This led to payments being diverted without the knowledge of the rightful recipients.
When farmers did not receive their dues and raised concerns, they were allegedly given misleading explanations to delay complaints. This pattern further indicates an attempt to conceal the irregularities and prolong the scheme.
The situation escalated when the audit team prepared to seek formal explanations from the accused. Shortly after, both individuals proceeded on leave—one from 7 February and the other from 10 February 2026. Their absence at a critical stage of the inquiry added to the suspicion surrounding their role in the matter.
In a subsequent development on 11 February 2026, both accused reportedly met the company’s managing director and are said to have admitted involvement in the embezzlement. As per the complaint, one confessed to misappropriating ₹2.5 crore, while the other admitted to siphoning off ₹2 crore. These admissions, along with documentary evidence, formed the basis for approaching the police.
Following directions from senior authorities, a formal case has now been registered. Preliminary findings are said to support the allegations, and investigators have begun a detailed probe into financial records, bank transactions, and internal documentation.
Officials indicated that the investigation will focus on tracing the money trail and identifying whether additional individuals were involved or aware of the irregularities. The role of internal controls and oversight mechanisms within the company is also likely to come under examination.
