Upa-Lokayukta Directs Criminal, Departmental Action Against High-Level Canal Staff

Quick Summary

• The Andhra Pradesh Upa-Lokayukta, P. Rajani, on September 8, 2025, directed the State government to credit the rightful general Provident Fund (GPF) amounts to High-Level Canal (HLC) employees after fraudulent withdrawals were reported.
• Two complaints revealed that GPF funds totaling ₹27.14 lakh were diverted into fake bank accounts using duplicate beneficiary IDs. Victims included an Assistant Executive Engineer and a retired Deputy Executive Engineer.
• The fraud was carried out by a junior assistant in collusion with other officials due to weak supervision and failure to verify beneficiary details properly.
• Orders instructed immediate crediting of genuine amounts without waiting for disciplinary proceedings and mandated criminal/departmental action against responsible officials across different roles in HLC Letter of Credit Division Anantapur. Weaknesses in the CFMS portal system were also flagged for examination.
• Following these orders:

– Genuine GPF dues have been credited along with interest payments at a rate of 7.1% (lower than the pending approval rate of 12%).
– Disciplinary actions against five former officials initiated alongside a criminal investigation under various IPC sections; one accused junior assistant has been detained in judicial custody.

Indian Opinion Analysis

This case highlights critical systemic vulnerabilities in handling employee provident fund operations within andhra pradesh’s administrative setup, particularly regarding CFMS infrastructure integrity and governance practices at local offices such as HLC Division Anantapur. Fraudulent withdrawals directly erode trust between employees and government agencies while inflicting financial harm on individuals who depend on timely settlement for their welfare post-retirement or service tenure.

By ensuring immediate payment of dues alongside interest rates for delays-even if slightly lower due to procedural bottlenecks-the State government demonstrates proactive accountability toward affected individuals but underscores its need for greater scrutiny over supervisory frameworks within sensitive financial departments.

Initiating both departmental actions and criminal proceedings offers encouraging signs toward justice but should extend further into comprehensive reforms eliminating loopholes prone to exploitation-an imperative not just local but resonant nationally given similar challenges from centralized digital platforms across states.

Published: September 08, 2025

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