Rs 350 crore funds siphoned off from two banks

Satischandra Jha, auditor of the NGO, Rakesh Jha, district administration officer and two bank officials were arrested.

Published: 11th August 2017 07:47 AM  |   Last Updated: 11th August 2017 07:49 AM   |  A+A-

For representational purposes (File | Reuters)

Express News Service

PATNA: Branches of two banks in Bihar’s eastern Bhagalpur district were raided by the state police and four people were arrested on Thursday in connection with the embezzlement of Rs 350 crore of government funds by an NGO in collusion with bank and district administration officials.

According to investigations by the economic offences wing (EOW), officials of the NGO, Srijan Vikas Sahyog Samiti, connived with bank and government officials to embezzle funds released by the state government to the district administration for land acquisition. The funds were transferred to the NGO’s bank account through forged signature of the district magistrate in connivance with bank officials over the past three years.

Raids were conducted by the EOW sleuths at two branches of Indian Bank and Bank of Baroda in Bhagalpur and the office of the NGO at Sabaur. Many files were seized and officials of the bank and the NGO were quizzed. Satischandra Jha, auditor of the NGO, Rakesh Jha, district administration officer and two bank officials were arrested. It was Chief Minister Nitish Kumar who first raised the issue of embezzlement of government funds while speaking at a function here on Wednesday.

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