KARIMNAGAR: Five persons, including a head constable and a retired administrative officer, have been arrested in connection with the Rs 1.40 crore salary fraud at the Karimnagar Police Commissionerate, with investigators uncovering a wider fraud involving fake bank accounts, loans and diversion of funds over nearly four years.
The case came to light after it was found that details of three deceased police constables were misused to divert salaries, leading to the misappropriation of government funds.
At the centre of the operation was head constable Neelam Ram Mohan. Investigators found that employee IDs of the deceased personnel were used to open fake bank accounts in the names of other individuals. These accounts were linked to phone numbers and email IDs controlled by the accused. From June 2022 to March 2026, salaries were credited into these accounts every month in violation of rules.
The money was withdrawn through ATMs and transferred to personal accounts via IMPS. The accused also availed loans using these accounts, with EMIs paid using the diverted funds.
As the investigation widened, more names emerged — retired administrative officer YV Muni Ramaiah and three private individuals: Lavudya Ravi, a watchman; Chukka Gangaraju, a private driver, and Shankar Namathabab, a mutton shopkeeper. Police said all were part of the fraud.
A detailed inquiry was ordered, and ACP Task Force Vaasala Satish led the investigation, which revealed record tampering and sustained financial fraud, causing significant loss to the government treasury.
Searches led to the seizure of 341.1 grams of gold ornaments and Rs 50,000 in cash from Neelam Ram Mohan. From Muni Ramaiah, officials recovered a mobile phone, a government SIM card and Rs 18,000 in cash. Further investigation is underway to identify if more persons are involved. By Friday, all five accused had been arrested, produced before a court and remanded to judicial custody.
Commissioner of police Gaush Alam, in a video message, outlined the modus operandi and said strict action would be taken. He warned that no one involved in corruption or misuse of government funds will be spared and stressed the need for transparency and accountability among officials.