Ludhiana block officers suspended in panchayat award money embezzlement case
Ludhiana: More than a year after a local inquiry flagged large-scale financial irregularities, Punjab's rural development department has suspended three officials in connection with an alleged ₹121 crore embezzlement involving six village panchayats in this district.
Administrative secretary Ajit Balaji Joshi on Monday confirmed the suspension of block development and panchayat Officer (BDPO)
Rupinderjit Kaur
and senior executive officers (SEPOs) Simrat Kaur and Gurpreet Singh Mangat, pending further inquiry under the Punjab Civil Services (Punishment and Appeal) Rules, 1970. The action follows an inquiry initiated in Oct 2023 by Punjab rural development and panchayats minister Laljit Singh Bhullar, after reports surfaced of suspicious withdrawals from fixed deposits meant for village development in six panchayats under Ludhiana Block 2.
The panchayats—Salempur, Sekhewal, Selkiana, Bounkar Gujran, Kadiana Khurd, and Dhanansu—allegedly misused land compensation funds totaling ₹120.87 crore, disbursed between 2016–2021 after land acquisitions for industrial projects and private development.
Inquiry paused, then revived
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While a district-level inquiry conducted by the district development and panchayat office (DDPO) had recommended action against at least four BDPOs and several sarpanches initially, the state's investigation was stalled earlier this year. A retired IAS officer, R C Nayyar, had been appointed to lead the investigation, but proceedings were paused unexpectedly in Feb.
Joshi now says the inquiry is being reopened and recovery proceedings will follow. "This is a case of fraud. The govt is clear — action will be taken against all those responsible," he told the TOI, confirming that action against sarpanches and panchayat secretaries was also in progress.
What the rules say
Under existing norms, panchayats receiving land compensation are required to place the funds in fixed deposits and use only the interest accrued for development activities. However, in violation of this rule, the funds were reportedly withdrawn directly from the principal amounts, without prior departmental approval.
A senior official involved in the inquiry stated that these withdrawals appeared to be carried out with the "connivance" of panchayat leaders and rural development staff. The DDPO report had recommended lodging FIRs and had triggered a vigilance probe. "The system was clear — use interest, not principal. Instead, fixed deposits were liquidated without approval. This isn't negligence; it's organised misuse," said an official on condition of anonymity.
Broader accountability
The Oct 2023 directive from Minister Bhullar also called for chargesheets against BDPOs Rupinderjit Kaur, Simrat Kaur, Gurpreet Singh Mangat, and Gurpreet Singh, along with multiple panchayat secretaries and sarpanches. Officials say the suspended officers may also face further departmental action after the inquiry concludes. It continues amid growing calls for transparency and criminal accountability in the handling of public development funds in rural Punjab.
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