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Ludhiana MC detects ₹1.74 crore embezzlement in arrear payout to 13 employees

Ludhiana's municipal corporation uncovered 1.74 crore in financial irregularities involving 13 employees, prompting a probe but no FIR yet.

Published on: Feb 23, 2026, 03:40:15 IST
By , Ludhiana
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The Ludhiana municipal corporation has unearthed alleged financial irregularities to the tune of 1.74 crore in the disbursement of arrears and other benefits to 13 employees, setting off a high-level probe into disputed payments and procedural lapses.

Ludhiana, India: A view of MC office Zone D in Ludhiana, February 22, 2026. (HT Photo)
Ludhiana, India: A view of MC office Zone D in Ludhiana, February 22, 2026. (HT Photo)

Despite the scale of the alleged irregularities, no FIR has been registered in connection with the case yet.

According to official records, a total of 1,74,30,913 was transferred into the bank accounts of 13 employees under questionable circumstances. The matter first surfaced through official correspondence in January 2024, when objections were raised regarding verification procedures and eligibility checks. A detailed scrutiny later revealed that in several cases mandatory physical verification was either not conducted or not properly documented before payments were cleared.

The inquiry report states that in some cases physical verification teams did not visit the site but nevertheless submitted reports. It also points out that certain payments were linked to older cases dating back to July 13, 2022, but their status was not clearly established before funds were released.

The employees named in the report and the amounts credited to them are: Sunita Rani — 47,66,687, Soni — 45,50,788, Kamal — 1,50,249, Mangat Ram — 2,10,074, Pinki Rani — 10,55,608, Omkar Chand — 3,62,474, Vijay Kumar — 16,11,105, Akash — 1,47,363, Harjinder — 17,545, Sawan (son of Sanjay) — 1,34,378, Janasher — 7,43,898, Aman — 7,46,055, and Ram Singh — 11,73,980.

On September 18, 2025, then MC commissioner ordered a detailed probe into the matter and recommended that an FIR be registered if irregularities were confirmed. However, sources within the civic body claim that despite the seriousness of the findings, no police case has been registered so far, allegedly due to political pressure.

This is not the first time the civic body has faced such allegations.

In previous years, 44 bogus employees were detected during a verification drive, raising serious concerns over internal checks. In another case related to step-up arrears, eight employees were found to have received undue financial benefits and recovery proceedings were initiated.

The latest case is being viewed as a continuation of those earlier irregularities, with 13 more names now coming under the scanner. Civic activists have demanded transparency and strict accountability, stating that repeated financial lapses damage public trust and burden the already strained finances of the municipal corporation.

MC commissioner Neeru Katyal Gupta said, “I have recently joined and will direct officials concerned to examine the matter. Action will be taken against the employees as per the findings”.

Local bodies minister Sanjeev Arora said, “I will mark an inquiry and a report will be sought from MC commissioner and action will be taken following the inquiry.”

Officials maintain that the matter is under examination and responsibility will be fixed after due process. They have also indicated that stricter monitoring mechanisms may be introduced to prevent recurrence of such incidents.