Sonbhadra Police Probing OTP Fraud Involving Village Council Funds

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Fraudulent Transaction Exposed: Investigation Uncovers Multi-Crore Scam Involving Village Panchayat Funds

In a shocking revelation, an investigation has uncovered a massive scam involving the misuse of village panchayat funds in Uttar Pradesh’s Sonbhadra district.

The probe, initiated following a court order, has exposed a complex web of deceit and corruption that has compromised the financial security of the local community.

The Case: A Web of Deceit

The scheme centered around the Lodhi village panchayat, which has been plagued by a series of unauthorized transactions from its bank account.
The scheme, orchestrated by officials within the panchayat, involved the use of One-Time Passwords (OTPs) to facilitate the transfer of funds into various private bank accounts and firms.
The exact extent of the financial loss remains unclear, but investigators believe it could run into millions of rupees.

How It Happened

According to the investigation, the scam began in April 2025, when Laxminarayan, a member of the panchayat committee, took over as chairman following the death of the previous village head.

Laxminarayan alleged that he was taken to a photocopy shop in Robertsganj, where Praveen Kumar and another official, Pankaj Kumar Maurya, convinced him to share OTPs to activate the system.

Unbeknownst to Laxminarayan, this was a ruse to facilitate the diversion of funds. Over time, large sums were transferred into multiple private bank accounts and firms allegedly linked to individuals, including Shamsher Bahadur Singh.

“We were initially unaware of the extent of the scam,” said Laxminarayan. “But once we realized what was happening, we tried to put a stop to it.”

However, the scammers continued to manipulate the system using alternative access methods. Furthermore, the ADO Panchayat allegedly obtained OTPs and carried out additional transactions involving substantial sums.

The Probe Continues

The investigation is now focused on tracing the trail of transactions and identifying the ultimate beneficiaries of the misappropriated funds.

Authorities are examining bank transaction logs, digital access records, OTP verification trails, communication data, and firm registration documents to unravel the intricate network of deceit.

As the probe continues, officials are working to determine the total extent of the financial loss and whether the case reveals broader vulnerabilities in the management and oversight of gram panchayat funds.