UP Millionaire Peon’ Scam: Man Uses 3 Wives, Relatives To Funnel Around ₹8.7Crores In Fake Salary Racket In Pilibhit

In a shocking case from Uttar Pradesh’s Pilibhit, a government peon allegedly turned into a “millionaire” by running a multi-crore fake salary racket using his three wives and close relatives as beneficiaries.

Family Network Busted

According to a report in Dainik Bhaskar English, police have arrested seven people linked to the scam, including two of Ilham-ur-Rahman Shamsi’s wives Lubna and Azara Khan along with his sister-in-law, mother-in-law, relatives, and acquaintances. His first wife, Arshi Khatoon, was earlier jailed and is currently out on bail.

How The Scam Worked

Shamsi, posted at a government college and later attached to the District Inspector of Schools (DIOS) office, allegedly exploited his access to salary systems. Investigators say he generated fake salary tokens and diverted government funds into bank accounts controlled by his family.

He reportedly created fictitious roles mteachers, clerks, contractors using names of relatives while routing payments to their accounts.

Crores Routed Through Dozens Of Accounts

Police have identified 53 bank accounts linked to the fraud. Over eight years, ₹8.15 crore was transferred to accounts of seven accused under the guise of salaries and payments for non-existent work.

Authorities have frozen ₹5.5 crore across multiple accounts so far.

Investigators found that a total of seven women, including the accused’s wives and close relatives, received large sums from the scam over eight years. His wife Lubna received ₹2.37 crore, while Azra Khan got ₹2.12 crore. Sister-in-law Fatima was transferred ₹1.03 crore, mother-in-law Nahid ₹95 lakh, Afiya ₹80 lakh, Parveen ₹48 lakh, and Ashkara ₹95 lakh, all allegedly routed as fake salary payments.

Fraud Uncovered By Bank Alert

The scam came to light in February 2026 after a bank flagged suspicious transfers of ₹1.15 crore from the Treasury to a private account. This prompted District Magistrate Gyanendra Singh to order a probe, which uncovered years of financial manipulation within the DIOS office.

Multiple Marriages Add Twist

Police also revealed that Shamsi had three wives living separately, allegedly unaware of each other. One of them reportedly told investigators she had no knowledge of his other marriages.

Mastermind On Bail

Shamsi, identified as the alleged mastermind, secured anticipatory bail from the High Court on March 30. Meanwhile, investigations continue to trace additional funds and possible involvement of others.