CBI begins probe into ₹28.42L misappropriation at ammunition factory

MUMBAI: The Central Bureau of Investigation (CBI) has initiated a probe into an official from the Ammunition Factory in Khadki, Pune, for allegedly misappropriating ₹28.42 lakh intended for medical reimbursements and the Death Benevolent Fund (DFB).

The investigation began following a tip-off about the suspended official’s alleged misappropriation of government funds designated for medical expenses and the DFB, according to agency sources. The CBI has registered a case under sections of the Prevention of Corruption Act and the Indian Penal Code related to criminal conspiracy, criminal breach of trust by a clerk or servant, falsification of accounts, and criminal misconduct. A separate account maintained with a public-sector bank is used to manage payments for medical reimbursements and the DFB, sources said.

In one instance under investigation, over ₹5 lakh meant for hospital payment in October 2022 was allegedly misappropriated. The accused reportedly manipulated the list sent to the bank along with the cheque, creating an additional entry. The manipulated account statement, showing the payment to the hospital, was submitted to the office to conceal the transaction. However, the original statement of account allegedly does not include this entry, the source added.

In another instance, around ₹7.97 lakh was shown as paid to another hospital in October 2022. An allegedly manipulated account statement was submitted by the accused, but the amount was transferred to a DFB account of the Ammunition Factory to maintain the credit balance in the account.

“Prima facie, it appears that the accused misappropriated government funds worth ₹28.42 lakh, falsified office records, and prepared fabricated account statements to conceal the embezzlement, thereby causing wrongful loss to the government and corresponding wrongful gain to themselves,” a CBI source stated. Embezzlement involves taking money or assets entrusted to someone and using them for unintended purposes.

The agency received permission from the competent authority to investigate the accused’s role, as required by Section 17-A of the Prevention of Corruption Act (amended in 2018), which mandates prior approval from the appropriate authority for any investigation involving a public servant under this Act.