Man arrested for mushroom scheme fraud in Bihar; sister absconding

A significant fraud case has emerged in Muzaffarpur, Bihar, involving the misuse of government employment schemes to swindle unsuspecting beneficiaries. Police arrested Ashutosh Mangalam, the primary accused, on charges of orchestrating an elaborate financial scam spanning multiple schemes.

According to preliminary investigation reports, Mangalam offered to arrange employment and business opportunities through government-sponsored initiatives. Using this pretext, he reportedly obtained loan approvals in the names of beneficiaries for mushroom production units and smart hut construction projects.

The fraudster then allegedly diverted the sanctioned funds directly into company bank accounts rather than channeling them toward the stated projects. The scheme victimized numerous individuals seeking legitimate livelihood support through official channels, resulting in substantial financial losses.

While Mangalam has been taken into custody, investigations revealed that his sister was also complicit in the operation. She remains at large, and authorities have launched a manhunt to apprehend her. Police are conducting further probe to identify additional accused persons and determine the full extent of the fraudulent activities.