Seven individuals, including senior executives of private companies, have been arrested in Chhattisgarh in connection with an alleged overtime payment scam that defrauded the state power distribution company of crores of rupees. The arrests were made by the Chhattisgarh Police's Economic Offences Wing (EOW) after a detailed investigation into the fraudulent scheme.
Details of the Scam
The scam involved the manipulation of overtime payment records for employees of private firms contracted by the Chhattisgarh State Power Distribution Company Limited (CSPDCL). According to police officials, the accused colluded with CSPDCL officials to inflate overtime hours and payments, resulting in an illegal gain of approximately Rs 2.5 crore over several years.
Modus Operandi
The accused allegedly created fake attendance records and overtime slips for non-existent work. They then submitted these falsified documents to CSPDCL for payment. The fraud came to light during a routine audit, which revealed discrepancies in overtime claims. The EOW launched a probe and gathered evidence leading to the arrests.
Accused and Their Roles
Among those arrested are the managing director and two other top executives of a private security firm, as well as four employees of another company. They have been booked under various sections of the Indian Penal Code, including cheating, criminal conspiracy, and forgery. The police are also investigating the involvement of CSPDCL officials who may have facilitated the fraud.
Investigation and Legal Action
The Economic Offences Wing has seized documents, digital evidence, and bank records related to the scam. Further arrests are expected as the investigation deepens. The accused were produced before a local court and remanded to police custody for further interrogation. The CSPDCL has initiated internal disciplinary action against its employees found complicit in the scam.
This case highlights the need for robust oversight mechanisms in public-sector contracts to prevent such fraudulent activities. The Chhattisgarh government has assured strict action against all those involved and has called for a comprehensive review of payment processes in state-owned enterprises.
