Postal Scam involving Rs. 2.56 crore - CBI has arrested two accused

The Central Bureau of Investigation has arrested two accused (private persons) in a scam of Rs 2.56 crores relating to the senior citizen saving scheme (SCSS) accounts at a post office in Vadodara (Gujarat).

A case was registered on 18.9.2010 against four Officials of Chemical industries Sub Post Office, Vadodara; an authorized postal agent; two private persons and others under sections 120B, 420,467,468,471 IPC and 13(2) r/w 13(1) (d) of the Prevention of Corruption Act, 1988.

It was alleged that the accused private persons in connivance with the accused Officials of sub post office reactivated 58 Senior Citizen Saving Scheme (SCSS) accounts, which were already closed and the credits of the amount were shown in these accounts in the computer of the post office. About 8 savings accounts were opened in the name of accused, their relatives and friends in the same post office The balance shown against these SCSS accounts was withdrawn. The amounts withdrawn from the SCSS accounts were deposited in the newly opened saving accounts in cash on the same day to prevent detection of cash flow variation by the Head Post Office. The accused, subsequently withdrew the amount from saving accounts by issuing cheques routed through clearing house. Thus, the accused have caused loss to the Government of India to the tune of Rs. 2.56 crores (approx) by withdrawing the amount against the closed SCSS accounts.

Searches were conducted at the residential/office premises of accused persons at eight places and documents related to investments by one of the accused to the tune of Rs. 47 lakhs (approx) were recovered.

Both the arrested accused were produced in the Designated Court at Gandhinagar and remanded to CBI custody up to 28.09.2010.

Further investigation is continuing

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