Cybercriminals siphon off ₹22.30 crore from Tamil Nadu Rural Development Directorate account

A complaint filed by the department said it was yet to ascertain whether the fraudsters had compromised the login credentials of authorised users, the banking portal or the OTP and authentication systems. (Representative photo) | Photo Credit: Getty Images/iStockphoto The Greater Chennai Police have received a complaint over the alleged siphoning-off of ₹22.30 crore from a bank account maintained by the Tamil Nadu Rural Development and Panchayat Raj Directorate through unauthorised access to its online financial transaction portal.K.R. Ramprasad, Block Development Officer/Superintendent, attached to the Directorate of Rural Development and Panchayat Raj, lodged the complaint with the Chennai Commissioner of Police, stating that unknown cybercriminals had fraudulently transferred ₹22,30,04,879 from the department’s Single Nodal Account maintained with HDFC Bank, CIT Nagar branch, between October 12 and 30.The account, held in the name of the Director of Rural Development and Panchayat Raj, contains funds released by the Union and State governments under the Fifteenth Finance Commission Health Sector Grants. The money is earmarked for strengthening primary healthcare infrastructure and services in rural areas.According to the complaint, the department had authorised Block Development Officers (Block Panchayats) to operate the account and release payments to contractors through an online banking portal using individual user IDs and passwords. No other person was authorised to initiate or approve transactions.The Rural Development and Panchayat Raj Department implements the Fifteenth Finance Commission Health Sector Grants (2021–22 to 2025–26), which are intended to strengthen primary healthcare infrastructure and services through Rural Local Bodies. Works are identified through District Health Action Plans prepared by the District Health Department in consultation with the Rural Local Bodies, and are executed by the District Rural Development Agency under the supervision of the District Collector.The funds received through the Health Department are deposited in the above HDFC Bank Single Nodal Account. The Block Development Officers (Block Panchayats) are authorised to draw funds from this account and release payments to contractors through the online portal provided by HDFC Bank, using individually allotted User IDs and Passwords. No other person is authorised to initiate or approve transactions from this account.The complainant alleged that during the period from October 12 up to 30 unknown persons gained unauthorised access to the above account and fraudulently transferred/withdrew an aggregate amount of ₹22.30 crore without the knowledge, consent or authorisation of the account holder or any competent authority.Preliminary verification of the bank statement and transaction records revealed a series of unauthorised electronic debits during the said period. None of these transactions was initiated or approved by any authorised user or signatory of the department.The fraudulent transactions were routed through email IDs associated with maker and checker accounts mapped to blocks in Nagapattinam, Ramanathapuram, and Tiruppur districts.The complaint said it was yet to ascertain whether the fraudsters had compromised the login credentials of authorised users, the banking portal or the OTP and authentication systems. It also noted that a detailed technical and cyber forensic investigation was required to establish how the unauthorised access was obtained.The fraud was also reported to the National Cyber Crime Reporting Portal, and an acknowledgement was issued. The complaint has sought registration of an FIR against the unidentified cybercriminals and others who may have facilitated or benefited from the fraud. It has also urged the police to identify the beneficiary and intermediary bank accounts and immediately freeze them to prevent further withdrawals.The department has sought preservation of the bank’s transaction logs, IP addresses, device details, login and session histories, OTP and authentication records, registered mobile numbers, beneficiary account KYC details and CCTV footage to aid the investigation. It has also requested the police to trace the diverted funds, apprehend those responsible and facilitate recovery of the entire amount to the government account.Police sources said that an FIR was registered and the investigation is on. Published - November 10, 2026 07:57 pm IST