₹10 mn fraud at LU: Three-member panel formed to suggest preventive measures

A day after the Lucknow University claimed that over ₹10 million were siphoned off from its account through cloned cheques, the varsity administration on Saturday

A day after the Lucknow University claimed that over ₹10 million were siphoned off from its account through cloned cheques, the varsity administration on Saturday submitted details of the fraudulent transactions to the bank concerned. A three-member committee was also formed to find ways to prevent and check such frauds in the future.

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“The committee will include former treasurer Narendra Bhushan, chief assistant of the State Bank of India KK Singh and finance officer Sanjay Srivastav,” said the university spokesperson NK Pandey.

As many as 11 cloned cheques, each of an amount just under ₹1 million, were used to perpetrate the fraud in which ₹1,09,82,935 were withdrawn from LU’s bank account in a year. The fraudsters cloned the cheques (using LU’s cheque numbers) and produced them at the UCO bank, siphoning off the money.

According to information provided by the varsity administration to the UCO bank, five of the 11 cloned cheques were put forward by ‘M/s Divya electrical’. Six other ‘firms’ had presented the remaining six cheques to the bank.

“The cloned cheques were presented by these ‘firms’ and money was credited to them from April, 2018 to May, this year. We have asked the bank management to return this amount to our account,” said the finance officer.

Earlier, vice-chancellor SP Singh had held a press conference in the city to give details about the fraud to media persons. Varsity officials had said that the accused withdrew amounts below ₹1 million to avoid scrutiny from the administration.

“They (fraudsters) drew up to ₹9.9 lakh in each cheque, thus ensuring that the bank did not take confirmation from the university. For any withdrawal of over ₹10 lakh, the bank informs the university’s finance department,” the V-C had said.

A team of Hassanganj police station is investigating the matter.