Mahesh Mandal, an arrested accused in the Rs 700 crore Srijan Scam, died on Sunday night at a hospital in Bhagalpur district in Bihar. A report by ANI states that Mandal was suffering from cancer and his kidneys were also damaged. Reportedly, he was working as a clerk at the government’s welfare department before he was arrested in the scam. According to India.com, Madal was taken to the hospital on Sunday evening when his health condition worsened and he died during the course of treatment. It is also being said that Mandal’s family members created ruckus after his death.
The Srijan scam is about a Bhagalpur-based NGO, Srijan Mahila Vikas Sahyog Samiti Limited that used to earn a high interest rate on the government funds while keeping the principal amount intact. Reports also states that the NGO allegedly swiped funds alloted by the government for various welfare schemes from the bank account of Bhagalpur district administration.
According to Indian Express, Mandal used to work as a conduit between the bank, government and the NGO by providing original bank statements to the Founder Secretary of the NGO Manorama Devi. Shiv Mandal, son of Mahesh Mandal, is Zila Parishad member and Bhagalpur district youth wing president of the ruling Janata Dal United (JDU). Media reports also states that Mandal had admitted in front of Police that he received Rs 3 crore as commission from Srijan over the last 15 years.
Srijan’s Manorma Devi also died in February this year. Bihar government has already ordered a CBI investigation into the scam which led to nine FIRs and 12 arrests registered by state police. An IE report also states that the Police are investigating charges on a cooperative society that listed relatives of bureaucrats as its members, and gave them loans in heavy amount far above the limit of Rs 50,000.