An alleged multi crore fraud involving village panchayat funds has surfaced in Uttar Pradesh’s Sonbhadra district, where police have registered a case against eight people, including an Assistant Development Officer Panchayat, two panchayat secretaries, a photocopy shop operator and several firm owners, over accusations of siphoning public money through misuse of OTPs and digital dongle access.
Case Linked to Lodhi Gram Panchayat Account
The case concerns Lodhi village panchayat under the Robertsganj police station area. According to officials, the FIR was lodged after court intervention and the matter is now being investigated under charges of cheating, forgery and criminal conspiracy.
The complaint was filed by Laxminarayan, who said that after the death of the elected village head, he was given responsibility as chairman of the panchayat committee in April 2025. He stated that transactions from the panchayat bank account required joint authentication through a chairman and secretary dongle system.
According to the complaint, the existing panchayat secretary, Praveen Kumar, already had access to the digital dongle linked to the account. The complainant alleged that he was later taken to a photocopy shop in Robertsganj on the pretext of setting up a new dongle and updating banking credentials.
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OTPs Allegedly Used to Transfer Funds
The complaint states that Praveen Kumar and another secretary, Pankaj Kumar Maurya, told him OTPs would be sent to his mobile phone and that he needed to share them to activate the system. Believing this to be a normal procedure and not fully understanding the technical process, he reportedly shared OTPs several times.
A few days later, he allegedly discovered that large sums had been transferred from the panchayat account into multiple private bank accounts and into firms allegedly linked to individuals including Shamsher Bahadur Singh. Investigators are examining claims that at least nine firms received the diverted money.
The complaint further alleges that even after the complainant stopped sharing OTPs, the system continued to be manipulated through alternative access methods. It is also alleged that the ADO Panchayat later obtained OTPs through email and used them to carry out further transactions involving significant sums.
Probe Examines Firms, Digital Access and Fund Trails
The matter became more serious after the complainant alleged that he was physically assaulted when he objected to the suspected irregularities. Police said statements of the persons involved are being recorded and all accused are under investigation.
Officials are now examining bank transaction logs, digital access records, OTP verification trails, email communication data and firm registration documents to determine the total amount allegedly siphoned off and identify the final beneficiaries. Investigators are also verifying whether the firms that received the funds were genuine business entities or shell firms created only to route public money.
Police sources said early findings suggest the transfers may have involved layered fund movement aimed at obscuring the origin of the money. The investigation is continuing, with authorities trying to map the complete trail of transactions and determine whether the case exposes wider weaknesses in the handling and oversight of gram panchayat funds.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
