Probe unearths Rs 40.3 cr scam in reimbursement of post-matric fees

The inquiry into the alleged financial scam in the scheme for reimbursement of post-matriculation fees of Scheduled Caste students, run by the Social Welfare Department in Muzaffarnagar, has established siphoning of Rs 40.33 crore. The report of the inquiry was submitted to the government last week and an FIR was lodged against 11 officials earlier this week.

The scam came to light after the district magistrate of Muzaffarnagar wrote to the government last month, reporting opening of fake bank accounts and withdrawal of funds worth Rs 7.6 crore from these accounts.

Principal Secretary, Social Welfare, Sadakant then formed a high-level inquiry team, comprising Joint Director, Social Welfare, Finance Controller and Deputy Director, Social Welfare Saharanpur Division, last month to probe the case further.

"The team submitted its report last week and an embezzlement of Rs 40.33 crore was detected from 2007 to 2011. We have lodged an FIR against the named officials and the government is planning to take strict action against them," Sadakant told The Indian Express.

The FIR was lodged by District Social Welfare Officer Rampal Yadav on Monday against 11 persons. They are Giyasuddin Mallik, the then district social welfare officer, A Kumar, assistant accountant, Ashok Kashyap, assistant accountant, Anil Verma, junior clerk, K Singh, social welfare officer, Dilip Kumar, then branch manager, United Bank of India, Rajendra Singh, cashier, United Bank of India, Mahendra Singh, then branch manager, Bank of Baroda, Pramod Kumar Bhutani, then cashier, Bank of Baroda, Bhopal Singh, then branch manager, Union Bank of India and Ram Kumar Agarwal, then cashier, Union Bank of India.

The main findings of the report claimed that Giyasuddin Mallik, who also held the additional charge of district social welfare officer, district backward class welfare officer as well as district handicapped welfare officer, in connivance with the department employees and the bank officers, opened 30 fake bank accounts in three nationalised banks. These accounts were opened in the period between September 13, 2007 and August 24, 2011 by the name of the designation of district social welfare officer. Government funds for post matric scholarship and old age pension schemes were credited in these accounts during the said period and later withdrawn through cheque and cash.

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