Delhi man cheats employer of over Rs 4 crore, puts wife on payroll for 10 years
Contents News/Article Date:1st August 2023
Relating to which Act: The Indian Constitution grants the Central and state governments the powers to enact laws to protect the employees and foster a professional work environment. Based on the industry, nature of the work, number of employees in the company, location, and more, there are various legislations like the Industrial Disputes Act 1947 (ID Act), Factories Act 1948 (Factories Act), and Shops and Establishment Acts in relevant states (S&E Act).
Applicable to which State: Acts and Rules are applicable to all States
Type: Money Control News Report
Pertains to: Employers and Employees
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Our Payroll system is capable of preventing all kinds of errors and frauds and there can be no duplication of payroll processing and records including all types of fictitious nature.
And in this instance
An employee of a private recruitment company is under investigation for fraudulently adding his unemployed wife to the company’s payroll for 10 years, causing the firm loss worth crores of rupees. An FIR was lodged with the police last week after an internal inquiry conducted by the Delhi-based company revealed the alleged fraud.
Subject: Delhi man cheats employer of over Rs 4 crore, puts wife on payroll for 10 years
Appended is the complete news item
Delhi man cheats employer of over Rs 4 crore, puts wife on payroll for 10 years. Investigations revealed that the accused uploaded the manipulated payroll file to the bank’s portal using the computer system of another finance manager and then deleted the file.
SOURCE: MONEYCONTROL NEWS
The accused admitted to the fraud, confessing that he had illegally transferred over Rs 4 crore.
An employee of a private recruitment company in Delhi allegedly executed a clever plan, defrauding the company of crores over a decade. Radhaballav Nath, a former finance manager at Manpower Group Service Private Limited manipulated the company’s payroll system to surreptitiously employ his unemployed wife and siphon off salaries amounting to over Rs 4 crore for years.
The shocking scheme, unveiled in December last year, left the firm counting the losses. Authorities are now investigating the financial crime that has rattled the company and left it questioning its data privacy measures.
The company had entrusted only three officers – the director (human resources), the chief human resource officer (CHRO), and the accused Nath – with access to monthly payroll and reimbursement data. Nath was a crucial link between the outside payroll vendor and other departments.
His ploy involved adding an additional row with his wife’s name, Sasmita Raul, and a corresponding salary amount in the payroll data. He also tampered with his own salary figure, leaving no trace.
“The modus operandi adopted by Mr Radhaballav Nath was that after receiving the approved excel file containing the payroll data from the office of the CHRO, Mr. Radhaballav Nath used to insert an additional row having his wife’s name,” explained the company’s complaint to Delhi Police.
Investigations revealed that Nath uploaded the manipulated payroll file to the bank’s portal using the computer system of another finance manager. To cover his tracks, he deleted the file after the upload.
The deception came to light in December 2022 when the company conducted an internal investigation and suspended Nath. He admitted to the fraud, confessing that he had illegally transferred a staggering Rs 3.6 crore to his wife’s bank account since 2012.
Additionally, Nath confessed to inflating his own salary and transferring Rs 60 lakh to his account, culminating in a total loss of Rs 4.2 crore to the company.
“Manpower Group checked its record and it shows that it has never employed the wife of Mr. Radhaballav Nath in any capacity. This fact was also admitted by Mr Radhaballav Nath during the internal investigation,” the company’s FIR read.
The accused used the ill-gotten gains to purchase properties in Delhi, Jaipur, and his hometown in Odisha, as well as invest in mutual funds and other financial schemes.