A major compensation fraud has been detected in the Kandhla to Gorakhpur LPG pipeline project of Indian Oil Corporation, prompting the Central Bureau of Investigation to conduct coordinated searches in Lucknow, Noida and Prayagraj on Tuesday. Investigators allege that nearly Rs 6.50 crore meant for landowners was illegally diverted to fake bank accounts with the involvement of project officials and external collaborators.
The complaint was filed by the Chief Vigilance Officer of the corporation. The project, executed by IHB Limited, a joint venture of three major oil companies, is a thousand crore initiative covering almost 2800 kilometres across Uttar Pradesh and Madhya Pradesh. Land acquisition for such central projects is handled by a Competent Authority responsible for verification of land ownership, crop loss assessment and compensation disbursal.
According to the complaint, several officials in partnership with private individuals manipulated beneficiary lists by adding non entitled names and replacing genuine bank details with fake account numbers. This resulted in compensation being siphoned away from legitimate landowners. The largest discrepancies were found in Prayagraj and Bhadohi, with further irregularities detected in Unnao, Kanpur Nagar, Kanpur Dehat, Lalitpur, Raebareli, Mau, Varanasi, Pratapgarh and Azamgarh.
A team from the CBI’s Anti Corruption Branch in Lucknow carried out five searches early Tuesday at the homes and premises of the accused. Locations included Vibhuti Khand in Lucknow, Sector 100 in Noida and Dhoomanganj in Prayagraj. Officers seized documents, bank papers, digital devices and files linked to the creation of fraudulent accounts and compensation approvals.
The preliminary investigation has identified the involvement of multiple officials from the corporation and revenue departments. Those named in the FIR include former and current project managers, engineers and revenue assistants from different districts along with unidentified individuals. Investigators allege that these persons opened fake bank accounts, diverted compensation amounts and blocked payments intended for genuine farmers.
The complaint details the estimated losses district wise. Prayagraj accounts for about Rs 4.77 crore, Bhadohi for Rs 1.35 crore and the remaining nine districts for Rs 39.34 lakh, with the total diversion reaching approximately Rs 6.50 crore.
Officials from the Central Bureau of Investigation said the scope of the inquiry is likely to expand. The probe will now examine the role of revenue staff, project personnel, data entry operators involved in preparing compensation records and bank officials linked to suspicious account openings. More officers are expected to be called for questioning as the money trail is traced to identify the final recipients of the diverted funds.
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