₹70 lakh local fund fraud: Kerala panchayat officer accused of diverting housing funds to relatives

Seethathode (Kerala): The scale of the financial fraud allegedly committed by Village Extension Officer (VEO) M R Ranilakshmi at the Seethathode Grama Panchayat has widened notably, with ongoing departmental audits revealing that nearly ₹70 lakh has been embezzled. Investigators suspect the total misappropriated amount could rise further as additional transactions are scrutinised.

Beyond diverting municipal funds intended for beneficiaries directly into the personal bank accounts of her relatives, preliminary findings indicate severe irregularities in the disbursement of funds under the state government's flagship LIFE Housing Scheme.

The formal complaint lodged by the Panchayat Secretary with the Chittar Police initially cited an embezzlement figure of ₹51.23 lakh. However, comprehensive audits conducted through Thursday established the confirmed fraud amount at ₹69.80 lakh. Authorities are currently auditing every transaction executed by the officer during her tenure. Information has also surfaced suggesting that the VEO received assistance from accomplices within the administration to execute the fraudulent transfers.

At a meeting held on Thursday, the Seethathode Panchayat Committee resolved to initiate a dual-track investigation, mandating both a full departmental probe and an active police investigation into the officer's dealings.

The financial diversion has left numerous local residents in severe distress. Beneficiaries who entered into contracts with the panchayat to construct homes under the LIFE Mission scheme have been forced to halt construction midway due to non-receipt of subsequent financial instalments. Many of these families had waited years to secure a spot on the scheme's official beneficiary list.

Investigators also suspect that the VEO obtained signed discharge receipts and blank verification forms from beneficiaries under the pretext of expediting future government fund releases, a standard administrative practice that was allegedly leveraged to cover up the unauthorised money transfers.