CBI apprehends principal suspect in Bihar’s ₹1,000 crore Srijan NGO scandal

In a significant development, the Central Bureau of Investigation (CBI) on Thursday detained the primary suspect, who had been on the run, in relation to the Srijan fraud case. This scandal, linked to a Non-Governmental Organisation (NGO) in the Bhagalpur area of Bihar, involves a whopping sum of approximately ₹1,000 crore (roughly US$ 130 million). The announcement of this arrest was made in a statement by the agency.

Rajni Priya, the individual apprehended in this case, served as the Secretary of the NGO, namely Srijan Mahila Vikas Sahyog Samiti (SMVSS). The capture took place in Sahibabad, Uttar Pradesh. Launching an investigation into the matter in 2017, the Central Bureau registered a total of 24 cases pertaining to allegations of embezzlement of government funds to the tune of approximately ₹1,000 crore. This was orchestrated through the manipulation of official records by the NGO.

The scandal became public knowledge in 2017, upon the demise of Manorama Devi, the initiator of the NGO. Responding to the request of the incumbent government led by a Janata Dal (United) and Bharatiya Janata Party alliance in Bihar, the CBI took up the case. Allegations emerged indicating cause for suspicion that NGO executives had plotted with representatives of an array of banks, amongst which were the Bank of India, Bank of Baroda, and Indian Bank. The objective of this conspiracy was to redirect government funds into their own accounts through the use of falsified documents.

Priya’s position in this case is further complicated by her familial link to the NGO, being the daughter-in-law of the founder, Manorama Devi. Since the commencement of the inquiry, Priya has allegedly been absconding. This led to her being declared a proclaimed offender by a CBI Court in November of last year.

Significant progress was made in this case on June 28, 2020, when the CBI presented a charge sheet. Figures implicated in it included the late Manorama Devi, the founder Secretary of SMVSS, along with her son, Amit Kumar, and his spouse, Rajni Priya. Additionally, the SMVSS Manager Sarita Jha, Director Subha Laxmi Jha, and a host of banking officials, including both Chief Managers and Branch Managers of the Bank of India and Bank of Baroda were also named.

Out of the 27 individuals accused in this case, more than half (12 in total) were confined to Beur jail; seven were awarded regular bail while an arrest stay was administered by the Patna High Court for four accused.