A startling case of financial crime has emerged, where an employee of a private Recruitment Firm allegedly orchestrated an elaborate plan to defraud the company by placing his unemployed wife on the payroll for more than a decade. The employee, identified as Radhaballav Nath, was responsible for handling payroll data and took advantage of his position to divert company funds to his wife’s bank account, causing a significant loss to the firm.
Radhaballav Nath, an assistant manager (finance) who was later promoted to the position of manager (finance), manipulated the monthly payroll data to include his wife’s name and salary. He used his access to the company’s data to insert an additional row with his wife’s name, Sasmita Raul @ Sasmita Nath, and allocated a salary amount to her.
Nath played a key role in the payroll process, acting as an interface between the company and the outside payroll vendor. He received the approved payroll data and then tampered with it before uploading it to the bank portal for salary transfers. To cover his tracks, Nath used another employee’s computer system to upload the manipulated file and later deleted it from the system.
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The fraud came to light in December 2022 when the company’s records were examined and discrepancies were found. An internal investigation was conducted, which revealed Nath’s fraudulent activities. He was suspended on December 11, 2022, and a committee was formed to probe the matter.
- During the investigation, Nath admitted to the illegal transfer of ₹ 3.6 crore to his wife’s bank account since 2012. He also confessed to inflating his own salary and transferring ₹ 60 lakh to his account over the years, resulting in a total loss of ₹ 4.2 crore to the company. Nath disclosed that he used the embezzled money to purchase properties in Delhi, Jaipur, and his hometown in Odisha, and invested in mutual funds and other financial schemes.
The investigation revealed that the company had never employed Nath’s wife in any capacity, and she was unaware of the fraudulent activities carried out in her name.
Following the internal investigation, the company filed an FIR with the Delhi Police, launching a formal criminal probe into the matter. Nath is facing charges of financial fraud, embezzlement, and manipulation of company records.
The case of Radhaballav Nath’s fraudulent actions has highlighted the need for robust internal checks and balances in companies to prevent such financial crimes. It serves as a cautionary tale for organisations to implement stringent measures to safeguard their financial operations and protect against fraudulent activities. The ongoing police investigation will determine the legal repercussions for Nath and any potential recovery of the embezzled funds.
