MP ‘ghost teachers’ salary scam: 14, including 6 govt staff held; Rs 1.11 crore siphoned via software manipulation

JABALPUR: The police booked 14 persons, including six govt employees, in connection with the multi-crore ‘ghost teachers' salary scam at a block education office in Jabalpur, where dummy employees were allegedly used to siphon off public funds over several years.

The case pertains to the Panagar block education officer's office, where an investigation found fraudulent payments amounting to over Rs 1.11 crore between the financial years 2018-19 and 2024-25. The alleged fraud was carried out by misusing the office's Drawing and Disbursing Officer's (DDO) code, enabling the accused to divert govt funds into multiple bank accounts, the police said.

According to investigators, the irregularities came to light after a data analysis by the treasury and accounts department flagged suspicious transactions. Acting on the findings, the district administration constituted a nine-member inquiry committee, which confirmed that payments were fraudulently processed by manipulating treasury software, creating fake vendor identities and altering bank account details.

Based on the inquiry report, an FIR was registered against six serving and retired govt officials as well as eight private individuals. Those named include officials who were posted at the Panagar BEO office during the period under scrutiny, along with their relatives and associates whose bank accounts were allegedly used to receive the siphoned funds.

According to the police, the funds were transferred under the guise of salaries, allowances and other payments, with many of the beneficiaries found to be non-existent or unauthorised. The probe also indicated that multiple layers of verification were bypassed or manipulated during the disbursement process.

The development marks a significant step in the ongoing investigation into the ‘ghost teachers' scam, which was first flagged after suspicious treasury transactions surfaced. Officials said further investigation is underway to determine individual roles, identify additional beneficiaries and assess the total scale of the fraud.

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