Mumbai Police Discovers Rs 6.5 Crore Payroll Fraud Involving 10 Ghost Employees After System Change

Mumbai Police suspended two officials after uncovering an alleged ₹6.5 crore payroll scam involving 10 fake employees. Authorities detected the fraud while shifting to a new salary management portal. Investigators found that salaries had been credited to non-existent personnel between 2019 and 2020. The suspended officials are Vijaya Ashok Chavan, an office superintendent, and Amol Arunrao Meshram, a senior clerk. Police have launched a detailed investigation into the case.

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Salary Portal Transition Exposes Massive Payroll Fraud

According to investigators, the accused officials allegedly created fake service IDs, attendance records, and Defined Contribution Pension Scheme (DCPS) accounts for ghost employees. They then credited monthly salaries into bank accounts linked to these fabricated identities. The suspicious transactions mainly occurred between December 2019 and February 2020, and again from June to September 2020. Police are now tracing the people who operated these bank accounts and benefited from the payments.

The First Information Report (FIR) lists 10 fake employees, including Ramdas Bhogle, Sudhakar Kadam, Sarju Yadav, Bhagwat Bhosale, Gunaji Khavkar, Mahadev Haldankar, Rajendra Sonar, Uttam Thorat, Suryakant Patil, and Pandurang Kadam. Investigators believe ministerial-level staff manipulated official records to insert these names into the payroll system. They allegedly prepared forged attendance registers and employment documents to make the fake employees appear genuine. Officials are verifying every identity mentioned in the FIR.

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Fake IDs and Pension Accounts Used to Divert Funds

Following the preliminary inquiry, the Joint Commissioner of Police (Administration), Brihanmumbai, suspended both officials under the Maharashtra Civil Services (Discipline and Appeal) Rules, 1979. During the suspension period, the employees cannot engage in private employment or business activities. They must regularly submit declarations to receive their subsistence allowance and cannot leave the Brihanmumbai jurisdiction without prior approval from the department. The disciplinary action will remain subject to the outcome of the investigation and court proceedings.

Mumbai Police also registered a criminal case against the accused officials at Samta Nagar Police Station on July 22, 2026. Authorities booked them under multiple sections of the Indian Penal Code, including criminal breach of trust, cheating, forgery, using forged documents, destruction of evidence, criminal conspiracy, and common intention. Investigators continue to examine financial records and banking transactions to identify everyone involved in the alleged payroll fraud and recover the diverted public funds.

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