Pilibhit Financial Scandal: Over Rs 1 Crore in Govt Funds Diverted to Employee's Wife's Account
A significant financial irregularity has been uncovered in Pilibhit district, Uttar Pradesh, involving the transfer of government funds exceeding Rs 1 crore from the district treasury to the personal savings account of an employee's wife. The scandal came to light after the Bank of Baroda's main branch in Pilibhit flagged the transactions as suspicious, prompting an immediate administrative response and the formation of a high-level inquiry committee.
Suspicious Transactions and Bank Alert Trigger Probe
The matter surfaced on December 3, 2025, when the branch manager of Bank of Baroda alerted the District Magistrate (DM) upon detecting an NEFT transfer of approximately Rs 24 lakh to the savings account of Arshi Khatoon. Following this alert, an internal audit by the bank revealed a shocking pattern: government funds totaling over Rs 1 crore had been systematically transferred to Khatoon's personal account between September 12, 2024, and December 3, 2025.
Investigators found that 98 transactions were made during this period, with all except eight exceeding Rs 1 lakh each. This resulted in an average monthly credit of over Rs 7 lakh into the account, a figure starkly inconsistent with normal salary disbursements. The funds were routed under the salary head, raising serious questions about oversight and internal controls.
Inquiry Panel Constituted to Investigate Deepening Scandal
In response to the bank's findings, Chief Development Officer Rajendra Kumar Shrivas, acting on directions from the DM, constituted a four-member inquiry panel on February 5. The committee is headed by Shrivas himself and includes the city magistrate, district treasury officer, and the lead bank district manager.
"The committee will probe all aspects of the matter and examine the role of every concerned department," Shrivas stated, emphasizing that no deadline has been fixed for the completion of the inquiry to ensure a thorough investigation. There is growing suspicion that more officials could be involved in the scheme, given the scale and duration of the transfers.
Employee Under Scrutiny as Discrepancies Emerge
The focus of the investigation has turned to Ilham Shamsi, the husband of Arshi Khatoon, who is posted in the office of the District Inspector of Schools (DIOS) and attached to Janta Inter College in Bisalpur. Shamsi handles accounts-related work, placing him in a position of potential influence over financial transactions.
Officials are critically examining why repeated high-value transfers under the salary head were not flagged earlier. As per DIOS Rajiv Kumar, a junior employee's salary typically does not exceed Rs 40,000–45,000 per month even at the peak of service, making the monthly credits of over Rs 7 lakh highly anomalous and indicative of possible fraud.
Fund Utilisation Patterns and Account Freezing
Investigators are also delving into how the diverted funds were utilized. Bank records show that over Rs 36 lakh was spent from Khatoon's account through UPI transactions, while more than Rs 66 lakh, including accrued interest, remained in the account at the time of discovery. Following administrative action, the account has been frozen to prevent further transactions and preserve evidence.
This case highlights significant vulnerabilities in the financial management systems within government departments, underscoring the need for enhanced monitoring and stricter audit protocols to prevent such incidents in the future.
