Pathanamthitta police have arrested a village extension officer on charges of swindling LIFE housing scheme funds to the tune of ₹53 lakhs in two panchayats in Pathanamthitta. The accused, Rani Lekshmi, was employed at the Elimullumplackal Circle of Thannithodu Grama Panchayat. 

As per the preliminary probe, while serving as the project implementation officer of the LIFE Housing Mission, she allegedly siphoned off funds meant for the beneficiaries of the housing scheme and diverted it to other accounts. The fraud has been detected in Thannithodu and Seethathode panchayats.

Thannithodu panchayat authorities suspected fraudulent transactions following an incident on August 19, when Rani, while handling official duties related to information on LIFE mission beneficiaries, allegedly provided incorrect bank details, misleading the panchayat secretary. As a result, ₹2,00,000 that was to be sanctioned to the actual beneficiary under the mission was credited to the bank account of another person.

Rani, thereby, caused an unauthorised loss to the government and enabled the ineligible person to unlawfully receive ₹2,00,000. Through these acts, she allegedly cheated and committed breach of trust against the rightful beneficiary and others, the FIR stated.

Following a complaint by the Secretary of the Thannithodu Grama Panchayat, police booked Rani under Sections 316(5) (Criminal breach of trust) and 318(4) (Cheating) of the Bharatiya Nyaya Sanhita (BNS), 2023.

She was remanded in judicial custody on Wednesday following her arrest. Thannithodu panchayat authorities sent a letter to Seethathodu local body alerting the officials of a possible fraud since Rani had been previously employed there. Aneesh Prabhakar, Secretary-in-charge,Seethathodu, did a preliminary probe which revealed further details.

"Details of one beneificiary were shared with us. We checked the treasury bills and found that IFSC codes of other places which were not located within the panchayat were enlisted. This seemed unusual as most of the beneficiaries would have accounts within a panchayat. Also, we found that instead of mandatory instalment amounts, she transferred bulk sums to certain accounts. These accounts belonged to her close family members including her husband and mother," Aneesh told Onmanorama. 

LIFE mission funds are disbursed in instalments of ₹40,000, ₹1,20,000, ₹1,60,000 and ₹80,000  depending on progress of achievement of milestones in construction of house. Rani allegedly sent amounts ranging between ₹2-3 lakhs to her private accounts in single transaction, the probe revealed. A beneficiary gets ₹4 lakh under the scheme. According to the panchayat-level probe, she transferred ₹51 lakh to four unauthorised accounts in Seethathode and 2 lakh in Thannithodu.

Seethathode panchayat committee will hold a meeting today to recommend a vigilance probe into the issue. The LSGD vigilance wing is also likely to launch an independent investigation. Konni C I, probing the case, said a detailed investigation is required to assess the extent of the fraud.