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Scholarship Funds Diverted: Rs 11 Crore Fraud Rings Broken in Lucknow

the420.in
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The Economic Offences Wing (EOW) of Uttar Pradesh Police has apprehended Chandramani Singh, one of the principal suspects in an INR 11.33 crore scholarship fraud targeting post-matric and fee reimbursement schemes intended for OBC students. Hailed as a significant stride in the ongoing Operation Shikanja, this marks the fiftieth arrest in the state’s wide-ranging financial fraud crackdown.

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Massive Fraud Uncovered Through Collusion

The scandal traces back to the 2012–13 academic year in Gautam Buddh Nagar. According to EOW sources, officials from the Backwards Class Welfare Department, including a district officer and a contractual computer operator, allegedly diverted scholarship funds by using NEFT transactions to credit bank accounts of ineligible recipients. Their scheme unfolded through a network that included two government employees and thirty-two private individuals, who set up fake accounts and siphoned off funds.

A formal complaint was lodged in 2014 at Surajpur Police Station. The investigation has so far identified thirty-four suspects. Of these, one public servant has since passed away, one has been charged, several private individuals were arrested earlier, and ten were absconding—until now. Chandramani, originally from Sonbhadra, was located in Chinhat, Lucknow, by the EOW’s Meerut unit.

Staging Recovery and Pursuing the Remaining Accused

EOW authorities announced they continue to pursue the remaining fugitives and have launched efforts to recover the embezzled funds. Chandramani is set to be produced in a competent court for further legal proceedings. The broader net cast under Operation Shikanja reflects the agency’s intensified push against bureaucratic corruption and educational theft.

The case underscores the importance of transparency and oversight in disbursing welfare funds. Experts say the systemic gaps in scholarship disbursement demand reforms: biometric authentication, real-time tracking, and strict audit trailsshould now be priority fixes.

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