Three police constables have been arrested after an alleged salary fraud worth nearly ₹2 crore was uncovered in Chhattisgarh's Bastar district. Investigators claim the irregularities continued for almost three years before being detected through the police department's first use of Artificial Intelligence (AI) to analyse salary records.
According to preliminary findings, electronic salary records were allegedly manipulated between October 2023 and May 2026, resulting in suspected misappropriation of government funds.
Three Constables Arrested
The arrested accused have been identified as:
- Girish Rai
- Rajkumar Katlam
- Hemant Mathew
Investigators said Girish Rai was posted as an assistant in the salary section of the Superintendent of Police's office and was responsible for preparing salary bills.
He is accused of allegedly altering digital salary records and increasing the salaries of himself and the two other constables.
Authorities claim the accused received between ₹1.5 crore and ₹2 crore through the alleged manipulation.
Small Monthly Increments Helped Fraud Evade Detection
According to investigators, the alleged fraud was carried out gradually through small monthly increases in salary entries.
Officials said the manipulation remained hidden because police salary expenditure naturally fluctuates due to:
- staff transfers,
- new postings,
- retirements,
- allowances,
- and changes in sanctioned strength.
These normal variations allegedly helped the irregular payments blend into routine salary disbursements.
AI Analysis Flags Suspicious Salary Patterns
The suspected scam came to light during a government audit in which AI tools were used to analyse the salary data of nearly 2,000 police personnel.
While reviewing the large dataset, the AI system reportedly identified unusual salary patterns and abnormal payments.
Officials said the automated analysis helped isolate suspicious entries that may have been difficult to detect through conventional manual auditing because of the volume and complexity of records.
The findings prompted a detailed investigation, leading to the arrest of the three accused.
Charges Filed Under Bharatiya Nyaya Sanhita
The accused have been booked under relevant provisions of the Bharatiya Nyaya Sanhita (BNS) covering:
- cheating,
- forgery,
- criminal breach of trust,
- and alleged misappropriation of government funds.
They were produced before a court and remanded to 14 days of judicial custody.
Investigators are now examining financial transactions, bank accounts, salary records and digital logs to determine whether any other individuals were involved.
AI Audits Gain Relevance in Government Finance
The case has renewed discussion on the use of AI-based financial monitoring within government departments.
Experts believe automated analytics can help detect:
- unusual payment patterns,
- payroll manipulation,
- duplicate or inflated salary entries,
- suspicious transactions,
- and hidden financial anomalies.
A researcher at Algoritha Security noted that AI-powered data analytics is useful not only in cybersecurity but also in identifying irregularities across large financial databases. The researcher said regular automated audits could help prevent similar cases by flagging abnormal patterns much earlier.
Legal Position
The allegations remain under investigation.
The arrest of the accused does not constitute proof of guilt. The final outcome will depend on the evidence presented before the competent court and the findings reached through due judicial process.
Shunyatax Global Insight
The Bastar case demonstrates how AI-driven auditing can strengthen financial oversight across public institutions. Traditional manual audits often struggle to detect low-volume, long-duration manipulation hidden within large datasets. Automated analytics, when combined with human investigation and strong access controls, can significantly improve fraud detection in payroll systems, procurement records and government financial databases.
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