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Ludhiana MC Rocked by Staggering Rs 1.74 Crore Arrears Embezzlement Scandal

  • Nishadil
  • February 23, 2026
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  • 3 minutes read
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Ludhiana MC Rocked by Staggering Rs 1.74 Crore Arrears Embezzlement Scandal

Major Financial Scam Uncovered in Ludhiana MC: Officials Accused of Pilfering Rs 1.74 Crore Through Fraudulent Arrear Payments

A significant financial scandal has come to light within the Ludhiana Municipal Corporation, where an audit revealed a staggering Rs 1.74 crore was allegedly embezzled through fraudulent arrear payouts to 13 employees, both retired and currently serving. Investigations point to a systemic failure and potential larger racket.

Well, this is quite the shocker from Ludhiana. A significant financial scandal has just rocked the Municipal Corporation, with officials uncovering what appears to be a blatant case of embezzlement involving a staggering Rs 1.74 crore. It seems a special investigation has flagged major irregularities in how arrear payments were disbursed to no less than thirteen employees – some retired, some still very much on the job. Honestly, it makes you wonder about the checks and balances, doesn't it?

The whole murky affair began to unravel after the Accountant General (AG) Punjab raised a series of red flags during a routine audit. They pointed out some serious "discrepancies" in payments that were supposed to be made based on a 2011 Supreme Court order. Now, for a bit of context: that Supreme Court ruling was about the grade pay fixation for an employee, and it set a precedent, meaning others were then eligible for arrears dating all the way back from 1999 to 2011. Sounds straightforward enough, right? Not so fast.

Upon hearing these alarming findings, MC Commissioner Sandeep Rishi didn't waste a moment. He immediately constituted a Special Investigation Team (SIT) to dig deeper, to really get to the bottom of what was going on. And what the SIT found? It’s truly eye-opening. They meticulously scrutinised the records and zeroed in on 13 individuals – seven of whom have already retired, while six are still drawing a salary from the corporation. These payments, mind you, were made between 2018 and 2020, well after the initial court order, which only adds to the suspicion.

So, how exactly was this alleged fraud carried out? The SIT's preliminary findings paint a rather grim picture. We're talking about instances where payments were reportedly made to employees who weren't even working during the specified 1999-2011 period. Imagine that! Then there’s the alarming revelation of fake service books being created, alongside payments of inflated arrears based on what can only be described as a completely wrong fixation of basic pay. And, almost unbelievably, many of these payments seem to have sailed through without any proper, diligent verification whatsoever. It truly highlights a systemic breakdown, doesn't it?

What's even more concerning is that this might just be the tip of the iceberg. MC officials are now openly expressing suspicions that this could be part of a much, much larger scam. They're looking at the possibility that over 200 employees could be involved, potentially inflating the total embezzled amount to a colossal Rs 5-6 crore. If that proves to be true, this would be a monumental blow to public trust and a serious stain on the corporation's reputation.

As a direct consequence of these damning findings, the Ludhiana Municipal Corporation is now gearing up to lodge a formal First Information Report (FIR). This will be against the 13 employees specifically identified by the SIT, and, crucially, against anyone else who facilitated these illicit payments. Accountability, it seems, is finally on the horizon. This whole episode serves as a stark reminder of the constant need for vigilance and robust oversight in public institutions. We'll certainly be watching how this unfolds.

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