HCM & HRIS

Fake Workers, Real Salaries: NMC Payroll Scam Probe Points To Wider Conspiracy

June 19, 2026
www.ETHRWorld.com
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Proshun Chakraborty

< />Nagpur: The alleged payroll fraud unearthed in the Lakadganj zone of the <a id=” captionrendered=”1″ data-src=”https://etimg.etb2bimg.com/photo/131849616.cms” height=”442″ href=”http://hr.economictimes.indiatimes.com/tag/nagpur+municipal+corporation” keywordseo=”Nagpur-Municipal-Corporation” loading=”eager” source=”Denny” src=”https://hr.economictimes.indiatimes.com/images/default.jpg” type=”General” weightage=”100″ width=”590″></img>Nagpur Municipal Corporation (NMC) could be far more widespread than initially suspected.</p> <p>Attendance registers, service books, payroll records, and bank transactions are being examined, while a special audit covering all 10 zones is also under consideration to determine whether the fraud was confined to Lakadganj or part of a larger organised racket. Mayor Neeta Thakre and municipal commissioner Vipin Itankar have ordered a detailed investigation into the matter.</p> <p>Preliminary findings suggest the accused did not create separate salary bills but allegedly tampered with original payroll statements after they were signed by the assistant commissioner. According to sources in the finance and accounts department, the salaries of several genuine sanitary workers were allegedly marginally reduced to accommodate nearly 20 fictitious employees, without altering the overall wage bill.</p> <p>To avoid detection, the alleged beneficiaries were shown with first names identical to those of existing workers but different surnames. In some cases, employee identification numbers were slightly modified, while in others, IDs closely resembling those of genuine employees were used.</p> <p>The manipulated salary bills were subsequently submitted to banks, resulting in monthly transfers of Rs48,000 to Rs62,000 into multiple accounts linked to non-existent employees. Audit teams have also found indications that festival advances were sanctioned and credited to beneficiaries with no employment records in the civic body.</p> <p>The interim audit conducted in the Lakadganj zone has corroborated allegations first raised by former Shiv Sena (UBT) city president Nitin Tiwari, who has since joined the Shiv Sena led by deputy chief minister Eknath Shinde.</p> <p>Tiwari had alleged that nearly Rs15 lakh to Rs20 lakh was siphoned off every month since 2019, causing losses running into several crores over the years.</p> <p>The findings have exposed glaring weaknesses in NMC’s payroll verification mechanism. Salary bills carrying manipulated entries allegedly cleared multiple levels of scrutiny before public funds were released, raising serious questions about oversight and accountability within the municipal establishment.</p> <p>Civic activists have demanded action against officials responsible for approving salary bills without proper verification. They contend that if the allegations are substantiated, the case would not merely be an instance of embezzlement by a few employees but evidence of a <a href=systemic fraud that quietly drained taxpayer money for years.

The report is expected to be submitted to Itankar soon, following which he will decide the future course of action, including registering an FIR and suspending officials found involved in the alleged scam.

HOW THE ALLEGED PAYROLL FRAUD WAS EXECUTED

Salary bills allegedly altered

Genuine workers’ pay reduced

Names of nearly 20 fictitious workers inserted

Identity masking tactic

Employee IDs manipulated

Money routed to multiple accounts

Festival advances also claimed

Fraud suspected beyond one zone

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