Chennai: The Chennai Central Crime Branch (CCB) has registered a case after at least Rs 22.10 crore was siphoned off from bank accounts linked to the Tamil Nadu Rural Development and Panchayat Raj Directorate through unauthorised access to its online financial transaction portal. The case was registered on 3 November, and the CCB has launched a probe involving over 46 transfers over 18 days in October.
Police officials said the funds were drawn largely from accounts associated with three panchayat unions in the state and diverted to unauthorised accounts. Approximately Rs 14 crore was transferred from the Mandapam Panchayat Union in Ramanathapuram district, about Rs 5 crore from Dharapuram Panchayat Union in Tiruppur district, and around Rs 3.10 crore from Nagapattinam Panchayat Union.
The fraudulent transfers reportedly occurred between 12 and 30 October this year, after which a complaint was lodged by a Block Development Officer with the Chennai Police Commissioner. Upon verification, the police found that multiple unauthorised electronic debits had taken place which had not been initiated or approved by authorised officials.
The money was moved to accounts of various companies and individuals across the country, including entities such as Samvyadh Marketing, Krishna Kirana Store, Pchandr Group, Bharat Grain, Nexvora Commerce Private Limited, and M/S KHB Brick Field.
The money siphoned was part of a single nodal account, held in the name of the director of Rural Development & Panchayat Raj Department with HDFC Bank, containing funds released under the 15th Finance Commission health sector grants, and was meant for strengthening primary healthcare infrastructure and services in rural areas, including rural health and wellness centres.
Police suspect cybercriminals breached the specialised online portal used for fund transfers to rural local bodies, which was developed in collaboration with a private bank. The cyber-crime team is examining how login credentials, including maker-checker dual-control authorisations tied to specific block offices were compromised, suspecting phishing emails were used.
Digital traces, including email logs and IP addresses, have pointed to suspicious access attempts originating from locations linked to Bangladesh, the United States, and Greece.
The police also suspect an international cyber-crime network connection operating through local intermediaries in cities such as Chennai, Coimbatore, and Tiruppur. Special CCB teams are tracing the beneficiary accounts, analysing digital records, and probing whether any insiders assisted the perpetrators. Efforts are also underway to freeze accounts and recover the funds.
The Bharatiya Janata Party (BJP) has criticised the ruling Tamilaga Vettri Kazhagam (TVK) government led by Chief Minister C. Joseph Vijay over the developments. BJP Tamil Nadu secretary Vinoj P. Selvam pointed out that the government failed to protect the funds and questioned the government’s administrative oversight, stating, “Where is CM Vijay when the people of Tamil Nadu demand answers?”
He highlighted that the funds were meant for rural development, essential services, and public welfare, and raised pointed questions about how cybercriminals penetrated government payment systems, how crores of transactions were executed, and where security checks, financial controls, and monitoring mechanisms were.
(Edited by Nardeep Singh Dahiya)
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