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21 Aug 2017

Srijan scam: Key accused in Rs. 700cr fraud dies

Srijan scam accused dies in hospital

Key accused in a Rs. 700cr government fund transfer scam, Mahesh Mandal, died yesterday evening at Bihar's Jawaharlal Nehru Medical College Hospital (JLNMCH) in Bhagalpur.

Welfare department official Mandal, who had been arrested on August 13, died half-an-hour after being rushed to hospital.

His kin later alleged negligence on the part of the police and administration and staged violent protests at the hospital.

In context

Srijan scam accused dies in hospital
What was the scam about?


What was the scam about?

The scam concerning the Srijan Mahila Sahyog Samiti NGO was unearthed after a Rs. 10cr government cheque bounced earlier.

The probe found officials copying the DM's signature and illegally transferring government funds to Srijan's account.

Srijan was also manipulating bank passbooks; it escaped government audit during 2007-14.

The massive scam was spread across different departments and regions. Bankers and government officials were involved.

What role did Mandal play?

Mandal was arrested from his Pista village home in Jagdishpur on August 13. On the basis of his statements, Bhagalpur district welfare officer Arun Kumar was arrested. Investigators say he could have split more beans. A total of 12 people were arrested in the scam.

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Is police negligence to blame?

Mandal was suffering from multiple illnesses including kidney and heart diseases, hypertension and diabetes.

Before his arrest, he was under consultation of experts from PD Hinduja Hospital.

He was rushed to hospital after he complained of discomfort due to urine retention.

He arrived at 10:17pm and died at 10:37pm. "He did not even give us time to initiate treatment," Dr Ram Charitra Mandal said.

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