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CHENNAI: Cybercriminals have allegedly siphoned off ₹22.30 crore from a bank account belonging to the Tamil Nadu government’s Rural Development and Panchayat Raj Department. The funds, released by the central and state governments to strengthen primary healthcare services and infrastructure in rural areas, were withdrawn illegally between October 12 and October 30. The Cyber Crime Wing of the Chennai Police Central Crime Branch (CCB) has busted the racket and arrested seven suspects who allegedly received the stolen money in their bank accounts and facilitated its transfer across multiple accounts.
Unauthorized Transactions and Suspected Login Breach
The fraudulent withdrawals were executed through multiple electronic transactions from the department’s Single Nodal Account, maintained at the CIT Nagar branch of HDFC Bank in the name of the Director of Rural Development and Panchayat Raj. The account held funds allocated under the 15th Finance Commission health sector grant meant for upgrading primary health centres and medical facilities in rural regions. The fraud came to light when K.R. Ramprasad, a Block Development Officer and Superintendent attached to the directorate, lodged a complaint with the Chennai Police Commissioner alleging unauthorized transfers of ₹22.30 crore by unknown cybercriminals.
A preliminary review of bank statements and transaction logs revealed several suspicious electronic debits that authorized departmental officials confirmed they had neither initiated nor approved. According to the complaint, Block Development Officers of block panchayats were authorized to operate the account and make payments to contractors via the HDFC Bank online banking portal using individual user IDs and passwords. Initial investigations found that the dubious transactions were carried out using email IDs linked to maker and checker accounts of blocks in Nagapattinam, Ramanathapuram, and Tiruppur districts, raising suspicion that authorized login credentials or the authentication system may have been compromised.
Money Routed Through 24 Bank Accounts
Following the registration of the case, the CCB Cyber Crime Wing analyzed the online transaction trail and tracked the movement of the defrauded money. Investigators discovered that the stolen amount was routed through 24 different bank accounts across various locations. The accused allegedly received funds in their respective accounts, withdrew a portion in cash, and transferred the remaining balance to other accounts, layering the transactions to obscure the money trail.
Police initially arrested three suspects identified as Chellapandian (56) of Ekkatuthangal in Chennai, Karumbur Annadurai (56) of Triplicane, and Lokanathan (65) of Bengaluru. As the probe progressed, four more accused were taken into custody. They were identified as Abdul Rahman (28) and Jagadish (31) from Madurai, along with Ashraf Ali and Kannadasan from Sivaganga.
Seizures and Ongoing Investigation
During the operation, police seized seven mobile phones, 14 SIM cards, one bank cheque book, and one bank passbook from the possession of the arrested individuals. The first three suspects, Chellapandian, Annadurai, and Lokanathan, were produced before the 11th Metropolitan Magistrate Court in Saidapet and remanded to judicial custody. Interrogation of the remaining four accused is currently underway, and they will be produced before the court once questioning is completed.
Investigating agencies are now working to trace the ultimate beneficiaries of the siphoned funds and identify other individuals and bank accounts involved in the network. The incident has raised serious concerns regarding the cybersecurity of government online banking operations and the monitoring of digital authentication protocols used by block-level officials. While investigators determine whether criminals stole login details or breached the banking portal, the police’s immediate priority remains recovering the ₹22.30 crore and dismantling the entire syndicate.
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