Divisional sports complex contractual staff embezzle ₹21.59 crore govt funds

A probe into the ₹21.59 crore embezzlement case at the Chhatrapati Sambhajinagar Divisional Sports Complex in Chhatrapati Sambhajinagar district has revealed that the main accused, Harshalkumar Anil Kshirsagar, 23, of Beed Bypass, used the pilfered fund to purchase luxury assets. The Economic Offences Wing (EOW) of Sambhajinagar, which is probing the case, has arrested Kshirsagar and Jeevan Karyappa Vinjada alias VK Jeevan on Sunday.

According to EOW officials, Kshirsagar, a contractual staff drawing a monthly salary of ₹13,000 as clerk in the accounts department, bought two high-end flats for his female friends in prime city areas, a BMW motorcycle worth ₹32 lakh, and a BMW luxury car valued at ₹1.30 crore.

EOW sub-inspector Ashok Avchar presented Kshirsagar and absconding accused Yashoda Shetty’s husband Jeevan before the court on Monday. The prosecution informed the court that Kshirsagar had transferred ₹1.67 crore to Jeevan’s account and ₹2.50 lakh to Yashoda’s account. The duo has been remanded to police custody until December 28, while Yashoda remains at large.

Jawaharnagar Police Station incharge Sambhaji Pawar stated that Kshirsagar had also handed over a significant amount of cash to a jeweller to purchase gold. The investigation found that Kshirsagar and Yashoda, both clerks employed on contractual basis, allegedly used fabricated documents to open personal bank accounts, enabling them to siphon off funds allocated to the sports complex. A car worth ₹27 lakh, registered in Kshirsagar’s name, has been seized. Additionally, a fixed deposit of ₹3 crore in his account and four bank accounts have been frozen by the police.

Modus operandi

The divisional sports complex, which gets substantial funding from the state government annually, had received ₹59.78 crore for the 2023-24 fiscal year, of which ₹37.71 crore was spent. The remaining fund was intended for operational purposes. However, Kshirsagar exploited his technical expertise to manipulate official records and misappropriate ₹21.59 crore.

Kshirsagar reportedly altered a single word in the official government email ID and registered a new email address with the bank. Using the letterhead of a former deputy director of sports, he sent a forged request to the bank, seeking activation of net banking services for the sports complex’s account. The request included his mobile number, which he added to the account. Once the net banking facility was activated, he transferred large sums into his personal account.

“The accused forged the deputy director of sports’ signature and submitted falsified documents to the bank, adding his mobile number to the official account. Using these credentials, he initiated net banking and systematically transferred funds. This raises serious questions about the lack of oversight from the deputy director of sports and the bank officials, especially when such large-scale transactions were being conducted,” a senior police officer involved in the investigation said.

Tejas Kulkarni, a sports officer, filed a complaint with the Jawaharnagar Police Station, leading to charges against the accused under several sections of the Indian Penal Code, including Section 316(2) (criminal breach of trust), 318(4) (cheating); 316(5) (criminal breach of trust by a public servant); 336(2) (forgery); section 61(2) (criminal conspiracy between two or more individuals).