Fodder Scam Case in Bihar

It was probably the first time in the history of India that a multi-dimensional fraud involving crores of rupees by the Animal Husbandry Department of the Government of Bihar was ordered to be investigated by the Hon’ble High Court of Judicature at Bihar. The Hon’ble High Court allowed a Public Interest Litigation (PIL) and issued directions to the Central Bureau of Investigation (CBI) to investigate the matter.

Obviously, it was a new experience for an investigating agency like the CBI to handle a case of such magnitude involving the entire state of Bihar. I remember I was camping in Kolkata and was asked by my senior officers to return to Patna and join the investigation.

How the Fraud Was Detected

As per the norms, each government department is allotted a certain amount to manage its affairs. It so happened that officers of the Animal Husbandry Department approached the Chaibasa Treasury (now in Jharkhand) for the withdrawal of a huge amount (the exact amount I do not remember).

There was insufficient balance in the treasury, and therefore, the Treasury Officer approached the Deputy Commissioner, Chaibasa, for advice. The Deputy Commissioner immediately contacted the concerned authority at the Patna Secretariat. To his utter surprise, he was informed that no such allocation had been made to any department in the Government of Bihar for the entire financial year.

Smelling something suspicious, the Deputy Commissioner, Chaibasa, flashed a message to all districts not to allow withdrawals by officials of the Animal Husbandry Department.

CBI Investigation and Findings

As far as I remember, around thirty cases already registered by the State Government were taken over by the CBI Patna Branch for further investigation, following the order of the Hon’ble Court.

During the investigation, it transpired that all fake allotment letters were typed in a local hotel named Patliputra in Patna. This was revealed by the hotel staff to the CBI. Although the staff were unaware of the fraud, they confirmed that a handful of individuals used to occupy several rooms for certain periods.

This fact corroborated the revelations made by one of the retired budget officers of the Animal Husbandry Department. Based on these fake allotment letters, officials siphoned off approximately ₹2800 crores from various treasuries across Bihar.

More than one thousand witnesses were examined, including several veterinary doctors. It was revealed that the fodder shown to be transported existed only on paper, as the vehicles mentioned for transporting huge quantities were fake—many of them registered as two-wheelers.

Similarly, medicines meant for cattle were also shown as received only on paper.

Role of Officials and Key Accused

The investigation proved beyond reasonable doubt the connivance of officials, bureaucrats, and ministers. The kingpin of the fraud, Shyam Bihari Sinha, who died during the investigation, was even granted an extension after retirement based on a two-line letter:

“My health is ok. Extension may be given.”

Following this, there was a long recommendation from the Leader of the Opposition, and eventually, the extension was granted—highlighting his deep influence over the government.

Outcome and Judicial Observations

I still remember those days with pride and gratitude and cherish the success achieved in exposing such a massive fraud. It was indeed a painstaking investigation carried out by dedicated officers.

The Hon’ble Court observed:
“This is a fraud against the nation.”

CBI officers accepted the responsibility gracefully and worked relentlessly to ensure justice. A large number of officials and politicians, including the then Chief Minister of Bihar, were booked and later convicted by the learned court.

A Special Court was established for the trial of the fodder scam cases. The CBI is credited for conducting this investigation under the guidance of dynamic leadership and a team of committed officers who worked round the clock for months.

Conclusion

The investigation of the Fodder Scam Cases remains a landmark in the legal history of Bihar, showcasing the strength of judicial intervention and investigative integrity.