Lottery fund fraud: accused says he burnt currency notes

In a startling revelation in the Kerala Lottery Welfare Fund fraud case, the main accused told investigators he burnt currency notes worth ₹6 crore after the 2016 demonetisation drive left him unable to use cash allegedly siphoned from the fund.

Sangeeth, a clerk accused of embezzling around ₹14 crore from the Kerala Lottery Welfare Fund Board over nearly a decade, disclosed during questioning by Vigilance officials, according to sources on Friday.

He allegedly stated that the cash consisted mainly of ₹500 and ₹1,000 notes that had been withdrawn in cash from welfare fund accounts before demonetisation.

Unable to exchange or use the money after the Centre scrapped high-value currency notes, he allegedly burnt the cash in an incinerator at his Pongummoodu residence in 2017.

The claim has prompted a forensic examination of the property, as investigators attempt to verify the statement and recover supporting evidence.

Visuals aired by news channels, earlier in the day, showed VACB officials inspecting the alleged site where the currency notes were reportedly burnt.

Vigilance officials allege that Sangeeth diverted money meant for lottery workers’ welfare by forging signatures and transferring funds into his own account as well as those of his associates.

The alleged fraud is believed to have continued until 2021.

The VACB arrested Sangeeth and his associate Anil Kumar on January 16 this year in connection with the case, though they were later granted bail.

The latest disclosure reportedly came when he was summoned again to explain discrepancies in the utilisation of the allegedly embezzled funds, sources said.

Investigators say that after demonetisation, the accused increasingly routed diverted funds through bank accounts held by his associate Anil Kumar and his brother Sampath.

The money is alleged to have been used to acquire assets, including land parcels in Kazhakuttam and Chakka on the outskirts of the State capital.

According to Vigilance, properties believed to be owned by the accused have already been attached as part of the investigation.

Authorities have also seized a luxury car linked to the second accused.

The case has drawn attention due to the scale of the alleged fraud and its impact on a welfare fund meant for lottery workers, many of whom depend on it for social security benefits.

Investigators continue efforts to trace the remaining funds and establish the full extent of the alleged embezzlement.