Treasury Scam – ED Expands Jharkhand Probe Into Alleged Salary Fund Fraud
Treasury Scam – The Enforcement Directorate has stepped up its investigation into an alleged large-scale misuse of government funds in Jharkhand, where suspicious withdrawals were reportedly made from multiple state treasuries under the salary expenditure category.
The central agency recently registered an Enforcement Case Information Report (ECIR) based on several FIRs linked to suspected fake transactions involving treasuries located in Ranchi, Hazaribagh, and Bokaro. According to officials associated with the ongoing inquiry, at least 12 individuals have already been arrested and sent to judicial custody during investigations conducted by the police and a Special Investigation Team (SIT).
Irregular Transactions Detected During Audit Review
The issue surfaced after Principal Accountant General (Accounts) Chandra Moli Singh alerted the state Finance Department about unusual withdrawals noticed while reviewing treasury records linked to police department expenditures. Initial findings reportedly pointed toward irregular financial activity in Bokaro and Hazaribagh.
Following the disclosure, the Jharkhand government directed district authorities to conduct inquiries into withdrawals processed under salary-related accounts. The scrutiny later widened after additional information suggested that the matter could involve more departments and districts than initially suspected.
State Government Forms High-Level Investigation Team
Chief Minister Hemant Soren subsequently approved the formation of a senior-level investigation panel headed by a top IAS officer. A senior official from the Accountant General’s office was also included in the team to assist with the examination of treasury transactions and departmental records.
Although the first phase of the investigation focused mainly on two districts, the Accountant General’s office later informed the government about possible irregular withdrawals from as many as 12 treasuries across Jharkhand. Officials also raised concerns that similar methods may have been used in departments such as health and education.
In response, the Finance Department instructed district administrations to carry out detailed verification of financial records and identify any unauthorized payments or manipulated entries.
SIT Probe Leads to Multiple Arrests
Parallel to the Enforcement Directorate’s action, a Special Investigation Team has been examining the criminal cases registered in connection with the alleged treasury fraud. In Ranchi, authorities arrested Animal Husbandry Department accountant Munindra Kumar along with his associate Sanjeev Kumar.
Investigators claim that salary amounts were allegedly manipulated by inflating basic pay figures, with some entries reportedly showing values reaching nearly Rs 20 lakh. Officials suspect that forged or altered records may have been used to facilitate the withdrawals.
The inquiry also uncovered allegations involving several police personnel linked to the Hazaribagh treasury case. Arrested constables Shambhu Kumar, Rajneesh Singh, and Dhirendra Singh were reportedly handling accounting-related responsibilities in the office of the Hazaribagh Superintendent of Police for almost a decade, despite existing police service regulations restricting such arrangements.
PIL Filed in Jharkhand High Court
The controversy has now reached the judiciary as a Public Interest Litigation has been submitted before the Jharkhand High Court seeking an investigation by both the Central Bureau of Investigation and the Enforcement Directorate.
Petitioner Daniel Danish alleged that the case may involve a wider network of corruption and possible collusion among senior officials. The plea requested a comprehensive probe into treasury withdrawals carried out across several districts under categories including travel allowance, daily allowance, and related claims.
The petition further sought examination of allowance claims made by security personnel and staff members who were allegedly shown as posted outside their headquarters to receive additional benefits.
In another allegation mentioned in the PIL, accused Kaushal Pandey was said to have received Certificates of Commendable Service from multiple IPS officers, raising questions about oversight and accountability within the system.