VISAKHAPATNAM – The Anti-Corruption Bureau (ACB) of the Central Bureau of Investigation (CBI) in Visakhapatnam has registered a Regular Case (RC0362026A0002) against two postal employees for allegedly orchestrating a ₹16 lakh fraud at the Ichchapuram Sub-Post Office. The First Information Report (FIR), filed on March 20, 2026, follows a formal complaint by V. Hari Babu, the Superintendent of Post Offices, Srikakulam Division.
The Modus Operandi
The investigation centers on activities during July and August 2017. According to the complaint, Mr. Balleda Srinivas, then the officiating Sub-Postmaster (SPM) at Ichchapuram, and Mr. P. Arun Kumar, a Postal Assistant, entered into a criminal conspiracy to defraud the department and its customers.
The accused allegedly withdrew ₹16,00,000 from six different Post Office Savings Bank (POSB) accounts. These withdrawals were made after customers requested that their savings be transferred into Kisan Vikas Patra (KVP) accounts for themselves or minor family members. Instead of opening legitimate accounts, the officials allegedly misappropriated the funds for personal gain.
Elaborate Cover-up
To conceal the misappropriation, the FIR alleges that Mr. Srinivas issued 12 fake KVP passbooks featuring fictitious manual account numbers. He reportedly signed these passbooks and affixed the official date stamp of the Ichchapuram Sub-Post Office to give them an air of legitimacy.
To further evade suspicion, the duo allegedly credited a commission of ₹10,450 to the account of a Standardized Agency System (SAS) agent, making it appear as though the KVP accounts had been opened through a registered intermediary.
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Financial Impact and Legal Action
The Postal Department calculates that as of January 30, 2026, the total wrongful loss—including the principal amount and accrued interest—stands at ₹27,32,800.
The accused are facing several charges under the Prevention of Corruption Act, 1988, and the Indian Penal Code (IPC), including:
- Criminal Conspiracy (Section 120B IPC)
- Criminal Breach of Trust by a Public Servant (Section 409 IPC)
- Cheating (Section 420 IPC)
- Forgery of Valuable Securities (Section 467 IPC)
- Falsification of Accounts (Section 477A IPC)
- Criminal Misconduct (Section 13 of the PC Act)
Mr. Balleda Srinivas had already been dismissed from service in 2022 due to unrelated financial irregularities, while Mr. P. Arun Kumar was most recently posted at the Pusapatirega Sub-Post Office. Competent authorities have issued the necessary approvals under Section 17A of the Prevention of Corruption Act to proceed with the investigation.
