Allegations of a large-scale payroll fraud in the Nagpur Municipal Corporation (NMC) have prompted an official inquiry, following claims that individuals who were not civic employees received salaries and festival advances over several years.
The issue came to light after Shiv Sena (UBT) city president Nitin Tiwari submitted a memorandum to the Mayor and municipal authorities, seeking a detailed investigation into suspected financial irregularities within NMC’s Lakadganj zone.
According to the complaint, several individuals employed at an industrial unit in Butibori, along with some of their family members, were allegedly listed as Group-D employees of the civic body. Their names were reportedly added to official payroll records, allowing them to receive salaries through the municipal payment system despite not being legitimate employees.
If proven, the allegations could represent one of the most significant financial scandals in the history of the civic administration. The complaint claims that the suspected irregularities date back to 2019 and may have continued for several years without detection.
The allegations suggest that non-employees were included in salary rolls, payments were processed through official channels, and funds were transferred directly into bank accounts. Complainants estimate that between ₹15 lakh and ₹20 lakh may have been diverted every month, potentially resulting in losses worth several crores over the years.
Banking records referenced in the complaint reportedly show salary deposits ranging from around ₹48,000 to more than ₹62,000 in certain accounts. It is also alleged that beneficiary names were periodically changed, making the suspected scheme harder to identify and allowing it to continue for an extended period.
The complaint has called for a comprehensive investigation into officials responsible for preparing, verifying, and approving salary bills. It also seeks a special audit of payroll records, attendance registers, bank transactions, and related administrative documents dating back to 2019.
Acting on the allegations, the Municipal Commissioner has ordered an inquiry to determine whether public funds were disbursed to non-employees and to identify those responsible if any wrongdoing is established. Officials have indicated that administrative and legal action will be considered after the investigation is completed.
Experts note that weak payroll monitoring systems can create opportunities for such frauds and stress the importance of employee verification, biometric attendance, digital audits, and regular scrutiny of payroll-linked bank accounts.
Cybercrime expert and former IPS officer Prof. Triveni Singh stated that the use of fake identities or fictitious beneficiaries to divert public funds is a serious misuse of taxpayer money. He added that digital forensic investigations and banking records can help trace fund flows and identify those involved.
The investigation is currently at a preliminary stage, and its findings are expected to determine the extent of the alleged irregularities and any accountability within the civic administration.
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