Massive Post Office Scam Unearthed: ED Searches 19 Locations in Gujarat

The Directorate of Enforcement conducted searches across 19 locations in Gujarat in connection with multiple cases of misappropriating government funds in post offices. The investigation revealed fraudulent activities, including falsified documents and illegally reopened accounts, leading to a substantial financial discrepancy.

The Ahmedabad Zonal Office of the Directorate of Enforcement (ED) conducted extensive searches on November 29, 2024, at 19 locations under the Prevention of Money Laundering Act, 2002. These searches are linked to multiple cases involving the misappropriation of government funds in post offices across Gujarat, according to an official announcement.

Investigations revealed that accused Sub Postmasters, in collusion with private individuals, fraudulently reopened and closed Recurring Deposit (RD) accounts, misappropriating around Rs 18.60 crore. In one case, conspirators manipulated records using departmental software, SAP, to embezzle Rs 9.97 crore between October 2019 and November 2022.

Further fraudulent schemes included repeatedly closing RD accounts with inflated amounts and opening new accounts with fictitious documents. The release detailed additional malpractices by post office officials leading to a loss of Rs 2.94 crore and Rs 1.57 crore in separate instances. Over Rs 1 crore was seized, alongside the discovery of properties worth over Rs 1.5 crore. Further investigations continue, authorities stated.

(With inputs from agencies.)