Accountant Diverts ₹7.11 Crore - Internal Audit Triggers Major Fraud Exposure

A significant financial scandal has surfaced at a Rewa-based firm after an internal audit uncovered that an accountant had allegedly diverted ₹7.11 crore over a period of seven years. The fraud, which went undetected between 2018 and 2025, came to light only after his transfer to another branch prompted a detailed review of financial records.

How the Fraud Operated

The accused accountant, identified as Atul Pathak, is alleged to have siphoned off nearly ₹4.95 crore through transfers to his personal and family members’ bank accounts. According to audit findings, the diversion involved dozens of transactions executed over several years without triggering internal red flags.

Investigators also found that payments from clients — including ₹1.30 crore from regular customers and ₹1.21 crore from individuals purchasing homes — were deposited directly into his personal accounts rather than the company’s financial system.

Detection Through Audit

The malpractice came to attention only after Pathak’s departmental shift, when new staff took over accounting responsibilities. Noticing irregularities, they initiated a thorough review which eventually exposed the long-running embezzlement scheme. The company subsequently filed a police complaint.

Where the Money Went

Authorities report that the misappropriated funds were used to acquire multiple assets, including:

• Plots in Rewa, Satna and Katni
• Residential properties, including one registered in his wife’s name
• Gold purchases and gold bonds
• Large fixed deposits, many under his spouse’s name

Police are now verifying property records, bank transactions and investment trails as part of the ongoing investigation.

Broader Implications

Financial experts note that the case highlights vulnerabilities in internal controls, especially when a single employee has unchecked access to multiple financial processes. The incident underscores the importance of periodic audits, employee role rotation and stronger oversight mechanisms.

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