Pilibhit | The investigation into the high-profile ₹5 crore scam linked to the District Inspector of Schools (DIOS) office has revealed shocking details about how government funds were allegedly siphoned off and routed through a network of relatives and close associates. As the probe progresses, investigators have uncovered a complex money trail in which multiple bank accounts were used as “safe zones” to split and circulate funds in order to evade detection.
According to officials involved in the investigation, the main accused, Ilham Shamsi, systematically transferred large sums of money into accounts belonging to his wives and female relatives. The largest transfers include approximately ₹2.37 crore into Lubna’s account and ₹2.12 crore into Ajara Khan’s account. Additionally, around ₹1.03 crore was routed to Fatima, over ₹80 lakh to Afia, nearly ₹48 lakh to Parveen Khatoon, about ₹95 lakh to Nahid, and roughly ₹38 lakh to Ashkara Parveen. Investigators believe that these layered transactions were deliberately structured to make tracking the original source of funds more difficult.
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Among those arrested so far, Lubna Navi and Ajara Khan are identified as wives of the main accused. Another wife, Arshi, had already been sent to jail earlier in the case. Meanwhile, Ilham Shamsi is currently out on anticipatory bail granted by the High Court. The probe has also revealed that a portion of the funds was transferred to private companies. Around ₹90 lakh was routed to a Bareilly-based firm, JHM Infrahomes Private Limited, and ₹17.18 lakh to Orica Homes Builder. Both these transactions have since been put on hold by investigators. Additionally, fixed deposits worth nearly ₹59 lakh linked to the case have been frozen.
One of the most serious aspects of the case is the suspected involvement of insiders within the system. Investigators have found indications that official IDs and digital portals used for processing government payments were misused. This has raised concerns about the possible role of personnel not just within the DIOS office but also in the finance, accounts, and treasury departments. Despite these findings, no concrete action has yet been reported against officials or staff, prompting questions about accountability and oversight.
According to the investigation, Ilham Shamsi allegedly executed the scam by exploiting the salary bill processing system for teachers. By gaining the trust of department staff and accessing their login credentials, he is said to have generated fake salary bills and diverted funds into accounts under his control. So far, more than 50 bank accounts have been identified as part of this network, indicating the scale and complexity of the operation.
Ilham’s background has also drawn attention during the probe. He was employed as a peon at an inter college in Bisalpur and began working at the DIOS office in 2015. With a good understanding of computers, he gradually increased his influence within the office. Although his attachment to the office was reportedly cancelled a few years later, he managed to regain access and continued operating within the system. Investigators believe this access played a crucial role in enabling the fraud over an extended period.
The police team responsible for arresting seven women linked to the case is set to be rewarded for its efforts. The Superintendent of Police has announced a reward of ₹25,000 along with commendation certificates, acknowledging the significance of the breakthrough in the investigation.
At present, agencies are continuing to examine the full extent of the network and its financial links. Officials expect further revelations in the coming days as more accounts and transactions are scrutinised. The case highlights serious vulnerabilities in internal controls and monitoring mechanisms within government systems.
Beyond the immediate arrests and recoveries, the scam underscores a broader concern: how insider access, weak oversight, and lack of real-time monitoring can enable large-scale financial fraud. Strengthening digital safeguards, enforcing accountability, and ensuring transparent processes will be critical to preventing such incidents in the future.
