Literally torched millions: Clerk in ₹16-crore fraud case admits to burning six crore after demonetization

THIRUVANANTHAPURAM: In a startling revelation, the prime accused in the ₹16-crore Lottery Agents and Sellers Welfare Board scam has claimed to have burned six crores of the embezzled money following the 2016 demonetization drive.

K. Sangeeth, a clerk at the Welfare Board and the first accused in the case, told the Vigilance and Anti-Corruption Bureau (VACB) that he incinerated the ₹1,000 and ₹500 currency notes at his residence in Pongummoodu in 2017 to avoid detection.

The disclosure came after Sangeeth was taken into custody for detailed interrogation, as investigators were initially unable to account for nearly half of the stolen funds. Sangeeth stated that he destroyed the cash during the night using a domestic incinerator. Following his confession, a Vigilance team accompanied by forensic experts inspected his residence and collected physical samples for laboratory analysis.

The investigation has also implicated Sangeeth’s brother, Sampath, and a close associate, Anilkumar, who allegedly acted as a middleman.

According to the Vigilance findings, the trio systematically siphoned off ₹16 crore between 2012 and 2021. The fraud was executed by manipulating cash books, office expense registers, and checkbooks, as well as forging documents under the names of various IAS officers who served as the Chief Executive Officers of the Board. These forged credentials were then used to illicitly withdraw large sums from bank accounts.

A significant portion of the remaining money was routed into real estate and business ventures. Sangeeth reportedly acquired extensive plots of land and constructed a house with the proceeds. Meanwhile, Anilkumar used his share to launch a construction company and secure fixed deposits in banks.

The Vigilance department has already confiscated 35 parcels of land acquired through the scam, along with a Toyota Fortuner SUV belonging to Anilkumar, as asset recovery efforts continue.