Bihar halts salaries of 10 lakh teachers, police after AG flags fraud
Synopsis
Bihar has frozen salaries for over 10 lakh teachers and police personnel after the Accountant General's audit reportedly uncovered inflated HRMS entries, fake employee records, and suspicious monthly payments linked to around 56,000 employees. With ₹1.83 crore allegedly diverted in Supaul alone and five years of records now under review, this is shaping up to be one of the state's largest public-sector payroll fraud probes.
Key Takeaways
Bihar has suspended salaries of approximately 9 lakh education personnel and 1.30 lakh police personnel as of 15 October 2026 .
The Accountant General's audit reportedly flagged around 56,000 employees linked to suspicious monthly payments of ₹6 lakh to ₹9 lakh .
Preliminary findings indicate around 5,000 suspicious entries in the Education Department alone.
In Supaul , clerk Mohammad Hatashmul is accused of creating fake records for 11 teachers and diverting ₹1.83 crore to family accounts.
Finance Secretary Vinay Kumar has directed investigations across six districts , covering salary records for the past five years .
Salary payments will be released only after cross-verification of slips against treasury records is completed.
Bihar has temporarily suspended salary payments to roughly 9 lakh education personnel and 1.30 lakh police personnel after the state's Accountant General (AG) flagged widespread irregularities in disbursements across multiple districts. The decision, announced on 15 October 2026 in Patna, was confirmed by Bihar Deputy Chief Minister and Finance Minister Bijendra Prasad Yadav, who said payments will be released only after the investigation concludes and discrepancies are resolved.
What the AG Report Found
The audit report reportedly identified suspected fraud involving two digital platforms — the Human Resource Management System (HRMS) and the Comprehensive Financial Management System (CFMS) — used to manage employee records and route government payments. According to the report, fraudsters allegedly inflated salary entries in HRMS records and processed questionable bills through collusion. Preliminary findings reportedly point to around 5,000 suspicious entries in the Education Department alone.
Most strikingly, the report indicates that around 56,000 employees may have been linked to suspicious monthly payments ranging from ₹6 lakh to ₹9 lakh. The precise scope and beneficiaries of these payments remain to be established through the ongoing inquiry.
Specific Cases Cited
One case cited in the audit involves Fateh Narayan Singh Academy School in Patna City, where an alleged scam worth ₹76.71 lakh was detected. In Supaul, a clerk identified as Mohammad Hatashmul has been accused of creating fake identification records for 11 teachers and diverting ₹1.83 crore into accounts belonging to his mother and mother-in-law, according to reports. These allegations require verification through the ongoing inquiry.
Similar irregularities were reportedly flagged in Samastipur and Banka, prompting the government to expand its scrutiny of salary records. Investigations in some districts — including Bhagalpur, Patna, and Supaul — have triggered a wider review of salary accounts and payment records covering the past five years.
What the Government Said
'The Bihar AG's report highlighted irregularities, which prompted us to take this decision,' Bijendra Prasad Yadav said, explaining the process through which audit reports are examined and presented before the state legislature. He stressed that public money deposited in the government treasury must be used in accordance with established rules and constitutional safeguards.
Finance Secretary Vinay Kumar has issued directives to the Education and Police departments to investigate the alleged irregularities reported in Patna, Bhagalpur, Aurangabad, Supaul, Banka, and Samastipur. The government has said strict action will be taken against those found guilty.
How the Verification Will Work
The government plans to cross-check salary slips against treasury records before authorising any payments. The Finance Department has directed the concerned departments to conduct a detailed investigation and identify officials responsible for confirmed irregularities. Yadav said payments will resume once discrepancies are examined and records are cleared.
Impact on Affected Personnel
The salary freeze directly affects approximately 10.30 lakh government employees — a significant proportion of Bihar's public-sector workforce — pending the investigation's outcome. This comes amid growing concerns over the integrity of digital payment infrastructure in state governments nationwide. The timing and duration of the payment hold will depend entirely on how quickly departments can verify records and clear employees of any association with suspicious entries.
Point of View
000 employees allegedly linked to suspicious payments and 5,000 suspicious entries in the Education Department alone suggests this is not a rogue-clerk problem but a systemic failure of HRMS and CFMS oversight. Bihar's digital payment infrastructure, rolled out to improve transparency, has apparently been gamed at scale — a cautionary data point for every state that has outsourced payroll integrity to IT systems without robust backend audits. The real accountability question is not just who committed the fraud, but who in the Finance and Education departments was supposed to catch it and did not.
NationPress
15 Oct 2026
Frequently Asked Questions
Why has Bihar stopped salary payments to teachers and police?
Bihar suspended salary payments to around 9 lakh education personnel and 1.30 lakh police personnel after the state Accountant General's audit reportedly flagged widespread irregularities — including inflated HRMS entries and allegedly fraudulent bills — across multiple districts. Finance Minister Bijendra Prasad Yadav said payments will resume only after investigations are completed and discrepancies resolved.
How many employees are affected by the Bihar salary halt?
Approximately 10.30 lakh government employees are affected — around 9 lakh from the Education Department and 1.30 lakh from the Police Department. The suspension is temporary and will be lifted once salary records are verified against treasury data.
What is the HRMS fraud alleged in Bihar's audit report?
The audit reportedly found that the Human Resource Management System (HRMS) and the Comprehensive Financial Management System (CFMS) were allegedly used to inflate employee salary entries and process fraudulent bills through collusion. Around 56,000 employees have been linked to suspicious monthly payments ranging from ₹6 lakh to ₹9 lakh, according to the report.
Which districts are under investigation in Bihar's salary fraud case?
Finance Secretary Vinay Kumar has directed investigations in Patna, Bhagalpur, Aurangabad, Supaul, Banka, and Samastipur. In some districts, the review covers salary accounts and payment records going back five years.
What specific fraud cases have been identified so far?
Two cases have been cited: an alleged scam worth ₹76.71 lakh at Fateh Narayan Singh Academy School in Patna City, and an alleged diversion of ₹1.83 crore in Supaul, where clerk Mohammad Hatashmul is accused of creating fake records for 11 teachers and routing funds to his mother's and mother-in-law's accounts. Both cases are subject to ongoing investigation and verification.
