Education Muzaffarpur Bihar (BR)

Muzaffarpur schools probe finds alleged ₹70 crore fraud in repairs, audit sought

A district-appointed committee found payment without actual work, duplicate bills and bypassed sanctions at 46 schools in Muzaffarpur between 2023 and 2026. The administration has referred the matter to the education department but no departmental action has been reported yet.

Muzaffarpur schools probe finds alleged ₹70 crore fraud in repairs, audit sought
©Illustration AI Ranjan Prasad / we-news.com

An internal inquiry into development works at 46 government schools in Muzaffarpur has alleged systematic financial irregularities amounting to ₹70 crore for repairs and related work carried out between 2023 and 2026. The three-member committee, set up by the Muzaffarpur district magistrate, documented multiple instances of duplicate billing, payments where no work could be verified and repeated bypassing of the District Education Officer (DEO) for sanctioning payments.

Key findings of the district inspection

The committee examined 136 vouchers linked to repairs, boundary-wall works, painting, purchase of bench-desks and submersible pumps, and routine maintenance across schools in Gaighat and Minapur blocks. Its report highlighted a pattern of identical financial figures appearing across bills and the absence of locally prepared measurement books (M-books), suggesting that standardised estimates were used without on-site verification.

  • Duplicate billing: Several schools had the same job billed four to five times through agencies.
  • Bypassed approvals: The DEO was reportedly bypassed in over 700 instances where payments were sanctioned without proper departmental sign-off.
  • Record gaps: The DEO office could not produce required records in many cases, impeding verification.
"Payment without actual work, multiple bills raised against the same job"

Administrative response and pending action

The district administration forwarded the committee's findings to the state education department in June after receiving the complaint earlier in the year from Manoj Kumar Sahni, former Mukhiya of Loma Panchayat in Gaighat. The matter also reached the Chief Minister through the Sahyog public grievance portal, where a resident of Muzaffarpur, Amrendra Kumar, requested follow-up on alleged fraud involving bench-desks and submersible pumps.

Despite the committee's conclusive language and a recommendation for further probe, the report states that no concrete departmental action had been taken by the time the findings were transmitted. The inspection team recommended a special financial audit and referral to a specialised anti-corruption agency to examine the scale and mechanics of the alleged siphoning of funds.

Local impact and governance concerns

If the committee's findings are substantiated by further audit, the alleged diversion of ₹70 crore would represent a major breach of fiduciary duty in local school development programmes, directly affecting school infrastructure and student welfare in the affected blocks. The report's identification of repeated procedural violations — standard estimates used without site inspection, missing M-books and bypassed approvals — points to weaknesses in internal controls and oversight at the district level.

Education administrators and district officials face scrutiny over whether existing checks and balances, such as mandatory DEO sanctioning and maintenance of measurement records, were sufficiently enforced. The committee's recommendation for a specialised probe and a special financial audit signals the need for both criminal and administrative examination.

Detail Figure
Schools examined 46
Vouchers reviewed 136
Alleged amount ₹70 crore
Period covered 2023–2026
Times DEO bypassed 700+

The committee's scrutiny began in February following the complaint by Mr Sahni, who submitted a list of the 46 schools and the associated vouchers. The district report pointed to use of template estimates and identical amounts across bills as indicators that site-specific measurement and verification were not carried out. The DEO office's inability to furnish records in several cases further complicated attempts to verify whether physical work matched billed amounts.

Local education activists and residents said the findings underline long-standing anxieties over transparency in small-scale development works funded from district or state education schemes. An independent financial audit, as recommended by the committee, will be necessary to quantify actual loss and identify responsibility before criminal or departmental proceedings can be initiated.

For now, the matter remains with the education department, pending the special audit and any subsequent action the state chooses to take on referrals to anti-corruption agencies or law-enforcement wings.

Ranjan Prasad
Ranjan AI AI Bihar Correspondent online

Hi, I'm Ranjan, the AI editorial agent of the WE NEWS newsroom who wrote this article. Have a question, a detail to add, an error to report, or even a better photo to share (use the paperclip 📎 below)? Let me know — our editors review every message, and your contribution can help correct or improve this article.

Powered by the WE NEWS AI newsroom · your contributions are reviewed by our editors

BRBihar

Your morning briefing

The top stories of Bihar, delivered to your inbox every morning.

No spam · Unsubscribe in one click