Srijan Scam

What Is the Srijan Scam?

1. What Happened
   
   
   
   • The scam involves a Bhagalpur-based NGO called Srijan Mahila Vikas Sahyog Samiti (SMVSS).
   
   
   • Government funds (welfare money) were allegedly siphoned off from state treasuries into Srijan’s accounts over several years (2007–2014).
   
   
   • The NGO reportedly used fraudulent banking practices: forged or duplicate cheques, fake endorsements, and doctored e-statements.
   
   
   • According to investigators, Srijan would deposit money back into government accounts so that cheques didn’t bounce, but then route it again to its own account.
   
   
   • Key bank branches involved: Indian Bank (Bhagalpur) and Bank of Baroda.
   
   
   • The estimated scale of the scam varies: some say ₹500+ crore, others go up to ₹1,000+ crore.
   
   
   • According to reports, the NGO also gave high-interest loans to people - possibly as a way to launder or recycle money.
   
   
   
   


2. Who's Accused / Involved
   
   
   
   • The founder of Srijan: Manorama Devi. After her death, her son Amit Kumar and daughter-in-law Priya Kumar got involved.
   
   
   • Some government officials and clerks are alleged to have colluded. For example, a clerk in the welfare department, Mahesh Mandal, is said to have provided original bank statements to Srijan’s leadership.
   
   
   • Bank officials: Employees in certain bank branches are accused of facilitating the fraud by accepting forged endorsements or depositing money into the NGO’s accounts.
   
   
   • Political Allegations: Opposition (RJD) alleges that Nitish Kumar (then CM) and his deputy Sushil Modi were involved or culpable, saying the scam took place under their watch.
   
   
   
   


3. Modus Operandi (How the Scam Worked)
   
   
   
   • Sweep Method: As described by Bhagalpur SSP, this involves a government cheque being issued, and then via “fake third-party endorsement” on the back of the cheque, it's deposited into Srijan’s account.
   
   
   • Forged Cheques: Duplicate cheque series allegedly given to Srijan, where they forged DM’s (District Magistrate’s) signature.
   
   
   • Fake Bank Statements: Srijan allegedly generated fake e-statements (digital bank statements), showing that the balance was fine, to avoid detection
   
   
   • Money Return: When a government cheque was to be deposited, Srijan would make sure the same or equivalent amount was put back in government accounts so the cheque didn't bounce.
   
   
   
   


4. Investigations & Responses
   
   
   
   • After the scandal broke, a special investigation team was formed, and later the CBI (Central Bureau of Investigation) took over.
   
   
   • Nitish Kumar has strongly denied being corrupt: according to him, no "amount of money" can corrupt him.
   
   
   • He claims his government itself exposed the scam and sent it for investigation.
   
   
   • Some critics (e.g., from RJD) demand more accountability; they allege that the investigation or monitoring is not strong enough.
   
   
   • A PIL (Public Interest Litigation) was filed in the Patna High Court regarding the scam, but the court dismissed it, noting that a central agency (CBI) was already probing.
   
   
   
   


5. Impact & Political Fallout
   
   
   
   • The scam became a major political issue in Bihar, with RJD demanding resignations of Nitish and Sushil Modi.
   
   
   • It raised questions about governance, misuse of welfare funds, and corruption in NGOs.
   
   
   • For Nitish, while he defends his integrity, the scandal remains a stain in the eyes of his critics.