Lalu demands CBI probe; Govt officials, bank employees among those held

The Economics Offences Unit of the Bihar Police has arrested seven persons in connection with alleged illegal transfer of government funds worth crores by an NGO.

Three FIRs have been registered at the Bhagalpur Kotwali police station against the promoters of Srijan Mahila Sahyog Vikas Samiti, Amit Kumar and his wife Priya Kumari, bank officials and government employees.

Prem Kumar, the private secretary of Bhagalpur District Magistrate Adesh Titarmare, has also been taken into custody for interrogation.

“Seven persons have been arrested in connection with the scam. Further investigation is on,” J. S. Gangwar, an official heading the investigation, told journalists.

‘Rs. 355.70 cr siphoned off’

According to State Chief Secretary Anjani Kumar Singh, nearly Rs. 355.70 crore was transferred from three government heads into the account of the NGO using fake cheques. The NGO is located in Sabour, about 10 km away from Bhagalpur.

“Office-bearers of the NGO along with bank officials and government employees transferred government funds with the help of forged signatures of the District Magistrate,” said Mr. Singh, adding that, “the scam involved persons who were well-versed with the modalities. It is also likely that the scam spread to other districts.”

On Wednesday, while addressing a gathering in Patna, Chief Minister Nitish Kumar had revealed that a major fraud was being investigated in Bhagalpur in which government money worth more than Rs. 250 crore had been siphoned off.

‘Dy. CM involved’

Meanwhile, Rashtriya Janata Dal chief Lalu Prasad Yadav on Friday demanded a CBI probe into the scam.

“The embezzlement took place between 2005 and 2016 when the Nitish Kumar-led NDA government was in power. It’s a huge scam, bigger than the fodder one. I demand a CBI probe into it,” said Mr. Prasad.

He added that Deputy Chief Minister Sushil Kumar Modi was involved in the racket as he was the Finance Minister during that period.

‘Remove Sushil Modi’

“Nitish Kumar, who often talks of zero tolerance to corruption, should first remove Sushil Modi from his post and then start investigation.”

Reacting to the allegations, JD (U) leader Neeraj Kumar said, “If Lalu Prasad has any facts to substantiate his claims, he should bring them forward before the investigation team.”