AI-assisted audit uncovers Rs 2 crore salary fraud by 3 cops in Chhattisgarh
Three policemen in Chhattisgarh's Bastar were arrested for allegedly siphoning off nearly Rs 2 crore through inflated salaries over three years. The scam was uncovered through an AI-assisted audit exposing the fraud.
Three policemen in Chhattisgarh's Bastar district have been arrested for allegedly embezzling between Rs 1.5 crore and Rs 2 crore by inflating salaries over nearly three years, officials said on Wednesday. The fraud came to light after an audit supported by Artificial Intelligence tools flagged an unusual rise in salary expenditure.
The accused have been identified as constables Girish Rai, Rajkumar Katlam and Hemant Mathew.
Based on the findings, a case was registered against them at Jagdalpur police station on Monday under provisions of the Bharatiya Nyaya Sanhita related to cheating, forgery, criminal breach of trust and embezzlement of government funds.
According to officials, Rai was posted as an assistant in the salary section of the office of the Superintendent of Police in Jagdalpur, while Katlam and Mathew were posted in different sections there.
Bastar Superintendent of Police Shalabh Kumar Sinha said routine internal and external audits first detected irregularities in the salary section, which led to a preliminary inquiry.
"The enquiry revealed that Girish Rai, who was responsible for processing salary bills, edited the soft copies of salary records before they were processed and fraudulently increased the salaries of himself and two other constables. During questioning, he admitted to the offence," Sinha said.
The SP said the accused allegedly siphoned off money from government accounts between October 2023 and May 2026. Rai, who had been posted in the SP office since 2012 and was appointed on compassionate grounds, is believed to be the mastermind of the fraud, he said.
The investigation also suggested that Rai allegedly raised the salaries of some other employees on the pretext of giving them loans, and later took the money back in cash as loan repayment, Sinha said. Police have identified such beneficiaries and are questioning them to find out their role in the alleged conspiracy. Further investigation is underway, he added.
Another police official said the fraud went unnoticed because police salary spending often changes due to regular transfers, postings and changes in staff strength, unlike project-based spending that is checked through routine financial audits.
The accused allegedly took out relatively small amounts every month by increasing salaries in their own names and those of a few others, which helped the irregularities avoid detection for several months.
The same official said the scam was finally detected after the AI-supported audit flagged the unusual increase in salary expenditure, prompting investigators to closely examine payroll records. The three were remanded in judicial custody for 14 days on Tuesday, the official said.
The case centres on alleged manipulation of salary records in the Bastar police office, which investigators say allowed the accused to withdraw government funds over an extended period before the irregularities were detected in an audit.
Three policemen in Chhattisgarh's Bastar district have been arrested for allegedly embezzling between Rs 1.5 crore and Rs 2 crore by inflating salaries over nearly three years, officials said on Wednesday. The fraud came to light after an audit supported by Artificial Intelligence tools flagged an unusual rise in salary expenditure.
The accused have been identified as constables Girish Rai, Rajkumar Katlam and Hemant Mathew.
Based on the findings, a case was registered against them at Jagdalpur police station on Monday under provisions of the Bharatiya Nyaya Sanhita related to cheating, forgery, criminal breach of trust and embezzlement of government funds.
According to officials, Rai was posted as an assistant in the salary section of the office of the Superintendent of Police in Jagdalpur, while Katlam and Mathew were posted in different sections there.
Bastar Superintendent of Police Shalabh Kumar Sinha said routine internal and external audits first detected irregularities in the salary section, which led to a preliminary inquiry.
"The enquiry revealed that Girish Rai, who was responsible for processing salary bills, edited the soft copies of salary records before they were processed and fraudulently increased the salaries of himself and two other constables. During questioning, he admitted to the offence," Sinha said.
The SP said the accused allegedly siphoned off money from government accounts between October 2023 and May 2026. Rai, who had been posted in the SP office since 2012 and was appointed on compassionate grounds, is believed to be the mastermind of the fraud, he said.
The investigation also suggested that Rai allegedly raised the salaries of some other employees on the pretext of giving them loans, and later took the money back in cash as loan repayment, Sinha said. Police have identified such beneficiaries and are questioning them to find out their role in the alleged conspiracy. Further investigation is underway, he added.
Another police official said the fraud went unnoticed because police salary spending often changes due to regular transfers, postings and changes in staff strength, unlike project-based spending that is checked through routine financial audits.
The accused allegedly took out relatively small amounts every month by increasing salaries in their own names and those of a few others, which helped the irregularities avoid detection for several months.
The same official said the scam was finally detected after the AI-supported audit flagged the unusual increase in salary expenditure, prompting investigators to closely examine payroll records. The three were remanded in judicial custody for 14 days on Tuesday, the official said.
The case centres on alleged manipulation of salary records in the Bastar police office, which investigators say allowed the accused to withdraw government funds over an extended period before the irregularities were detected in an audit.
