Chitrakoot, Oct 17 (UNI) A massive pension scam amounting to Rs 120 crore has been unearthed in Chitrakoot, Uttar Pradesh, exposing deep-rooted corruption within the Treasury Department.
The scandal involves fraudulent transactions made through the pension accounts of retired teachers, with officials colluding to siphon off government funds over a period of nearly seven years, officials said today.
The scam came to light when 65-year-old Kamla Devi, a widow of a retired government school teacher from Khandheha village in Mau tehsil, approached the treasury office after her pension had been stopped for over six months. She was shocked to learn that her account had been frozen due to an alleged fraud of Rs 31 lakh, which had been deposited and withdrawn from her account without her full knowledge.
Upon further inquiry, Kamla revealed that her brother, Omprakash, a resident of Kaushambi, had claimed the funds and convinced her to withdraw the amount and hand it over to him. When she later questioned him, he abruptly ended the call, raising her suspicions. She filed a formal police complaint.
The police probe, assisted by the audit team, uncovered a large-scale fraud involving 95 suspicious accounts, all of which have now been frozen. These accounts received large sums, ranging from Rs 30 lakh to Rs 45 lakh, in the name of pension payments. The money was then withdrawn with the consent of the account holders, many of whom were given a small commission or misled into believing it was a legitimate transaction to avoid income tax liabilities.
According to Senior Treasury Officer Ramesh Singh, the scam was orchestrated by Assistant Accountant Sandeep Srivastava, Accountant Ashok Kumar, and retired Assistant Accountant Awadhesh Kumar, all working within or associated with the Treasury Department. Awadhesh Kumar, although retired, was rehired on a contract basis and played a key role in the scam. Omprakash, Kamla Devi’s brother, also acted as a middleman, managing contact with pensioners and facilitating withdrawals.
“This operation has been running covertly for nearly seven years,” Singh revealed. “The scam was first flagged during the audit of the financial year 2023–24, which led to a confidential internal investigation. Once sufficient evidence was collected, an FIR was immediately lodged against 99 individuals.”
The accounts targeted in the fraud were with major banks, including SBI, Bank of Baroda, Indian Bank, and Aryavart Bank. As of now, only Rs 22 lakh has been recovered.
Superintendent of Police Arun Kumar Singh stated, “An SIT, led by a Circle Officer, has been formed to probe the matter. So far, two current treasury employees and multiple contract workers have been found involved. Arrests will be made soon, and full recovery of the siphoned funds is being pursued.”
