Random audits by the Bihar education department have uncovered an alleged scam in which excess salary, HRA allowances, and dues were withdrawn by misusing the online Human Resource Management System (HRMS).The department said the scam is estimated to be to the tune of Rs 35 crore, involving 7,202 cases of excess withdrawals from across all 38 Bihar districts. Though mass audit and timely intervention have helped recover most of the amount – around Rs 33 crore – it has put District Education Officers (DEOs) in the dock for their alleged oversight that let the scam go undetected for years.The districts reporting the maximum such cases include Gopalganj (783), Gaya (628), West Champaran (551), Patna (312), Buxar (260), Rohtas (247), Muzaffarpur (238), and East Champaran (214).The alarm was raised by random audits in October during which three sample cases of excess withdrawals — one each from Bhagalpur, Nawada, and Patna — were detected, forcing the state education department to order a statewide audit of payments of salary, allowances, rent, and dues through the HRMS system that was introduced four years ago.On Thursday, Education Department Director (Administration) Vijay Kumar Pandey issued a show cause notice to all DEOs in the state, asking them to submit a point-wise reply with supporting evidence within seven days. Failure to respond within the stipulated time will lead the disciplinary authority to presume the official concerned has no defence, making them liable for an ex-parte decision, and immediate action.‘Gross failure, criminal omission’The government termed the unchecked illegal withdrawals a “gross failure in administrative control and criminal omission,” adding that the supervisory laxity severely tarnishes the image of the administration.“This act demonstrates your apathy, gross negligence, and supervisory laxity towards your official duties, which has tarnished the image of the government and the department. This administrative failure and lapse on your part fall under the category of misconduct by a government servant,” said Pandey in his letter to all DEOs.Story continues below this adCiting a consolidated departmental audit report submitted to the education department on November 4, the letter to the DEOs said: “In 7,202 fraudulent cases uncovered, carrying a total recoverable amount of Rs 35,27,49,333, the authorities have managed to recover Rs 33,02,36,12. A significant shortfall of Rs 2,24,30,205 remains outstanding.”The audit revealed a violation of financial protocols, directly breaching Finance Department circulars, and the Bihar Treasury Code.Modus operandiExplaining the modus operandi of the fake withdrawals, the letter said: “…due to the collusion of the Maker, Checker, and Approver working in your district, tampering and forgery were done on the HRMS portal, leading to the illegal withdrawal of amounts far exceeding the admissible limits under the salary head, house rent allowance (HRA) head, and arrears head.”Notably, three levels of approvals are needed for any kind of withdrawal under the HRMS system. While a maker is an official who processes salary, the checker ensures that the amount is correct while, approver, usually a district programme officer-level person, gives the final nod.Story continues below this adCalling the lapses a “criminal omission” by DEOs, the education director’s letter said: “The direct responsibility for examining the admissibility of salary and allowances of each employee and making payments lies with the concerned disbursing and drawing officer (DDO)-cum-approver (Approver) as the District Programme Officer (Establishment). Nevertheless, as the highest departmental officer and District Admin (HRMS) of the district, the primary responsibility for continuous monitoring and supervision of this entire process rests with you (the DEOs).”It said, “The occurrence of all types of illegal withdrawals by the maker, checker, and approver (DDO/District Programme Officer, Establishment) working under your administrative control, and your inability to conduct proper monitoring from your level and prevent it in time, clearly reflects gross failure in your administrative control and criminal omission.”Bihar Education Minister Mithilesh Tiwari told The Indian Express: “The statewide audit has raised red flags about excess withdrawals. Even though we have recovered the maximum amount withdrawn, we will fix accountability for misuse of the HRMS portal. We are conducting a review meeting on this on November 15 to discuss ways to plug the gaps in the online payment system. The department will take stern action against officials responsible for fake withdrawals.”What is HRMS?The HRMS is an integrated digital platform launched by the Bihar government to modernise public administration by transitioning traditional, paper-based personnel management into an efficient, transparent digital workflow.Story continues below this adDeveloped by the Bihar Administrative Reforms Mission Society (BARMS) in collaboration with the Finance and General Administration departments, the system began its initial rollout on August 27, 2022, starting with an automated payroll module designed to streamline monthly salary processing.The initiative expanded significantly in May 2025 with the launch of its secondary phase, introducing comprehensive modules for regular employee registration, digital Service Books (e-SB), Employee Self-Service (ESS), and online leave management.