More than Rs 22 crore belonging to bank accounts of panchayat unions under Tamil Nadu’s Rural Development Department was allegedly siphoned through digital fraud, with police arresting seven people in connection with the case, Dinamalar reported on November 14.
The investigation is being conducted by two special police teams after suspected cybercriminals allegedly hacked the internet-based platform used by the department for financial transactions. The accounts are linked to various panchayat unions across Tamil Nadu, which handle public funds for rural development and local administration.
Three people were arrested in Chennai in connection with the case, according to the report. Four more people from districts including Sivaganga were subsequently arrested and are being questioned by the police. The report did not identify the arrested individuals or provide details of the specific transactions through which the money was transferred.
The case emerged alongside a separate investigation into the alleged withdrawal of Rs 8.85 crore from the bank account of the Puducherry government’s Mahatma Gandhi Postgraduate Dental College. Dinamalar reported the two incidents in the context of a wider police investigation into suspected digital theft of government funds.
The alleged loss from Tamil Nadu’s rural development accounts places the security of digital payment systems used by local government institutions at the centre of the investigation. Panchayat unions depend on bank accounts and online transaction systems to receive and disburse public money. Any unauthorised access to those systems can affect the administration of funds, although the report did not specify whether any public project or payment had been halted.
The report also did not state when the suspected transfers took place, how the accounts were accessed, whether the stolen amount had been frozen or recovered, or whether departmental officials had been questioned. These details are expected to form part of the police investigation.
The arrests indicate that the case has moved beyond the initial detection of unauthorised transactions, but the extent of the alleged network and the final financial loss remain subject to investigation. Police are continuing to question the four people arrested from districts including Sivaganga, while the two special teams are examining the suspected hacking of the department’s transaction platform.
The next steps in the case will depend on the investigation into the digital access route, the movement of the funds and the roles allegedly played by those arrested. No further official details were included in the report.
