MADURAI: Funds worth Rs 108 crore sanctioned for women self-help groups by Tamil Nadu Corporation for Development of Women (TNCDW) were diverted to accounts of officials, their relatives and bogus SHGs using manipulated bills and records, a special audit and inquiries by district officials have found.Based on the findings, the first FIR was filed against six block mission managers, one assistant project officer and one block-level functionary by Mayiladuthurai district crime branch on July 3 over alleged diversions in 2023-26. TNCDW, then chaired by Gagandeep Singh Bedi, ordered the special audit in March after inspections by its financial adviser, internal audit findings and petitions flagged irregularities in block-level fund use.The exercise has so far covered 186 of 388 blocks across Tamil Nadu, identifying Rs 107.94 crore in deficiencies under Tamil Nadu State Rural Livelihoods Mission (TNSRLM) scheme. The blocks covered include Mayiladuthurai, Vellore, Villupuram, Tuticorin, Ranipet and other districts.Social activist A Ramakrishnan, who pursued the issue through a series of RTI applications, said TNCDW has given him more than 10GB of records so far. “A nexus at block and district levels used fake bills and records to divert money meant for women’s groups.”The audit papers, accessed by TOI, show how basic checks were bypassed. For instance, at Kuttalam in Mayiladuthurai, a blank bill was used to account for Rs 60,000 as SHG training expenditure, while a Rs1.6 lakh notebook bill was corrected or manipulated. In Kollidam and Sirkazhi, training funds went to block mission managers’ accounts even though the expenditure was not incurred.The methods varied elsewhere. Tiruvannamalai enquiry records say block coordinator Pushpalatha created 49 bogus women SHGs using people from three nearby districts and obtained loans through Indian Bank’s Arani branch. Around Rs 2 crore later became a non-performing asset. At Vallam in Villupuram, Rs 35 lakh in incentive money was transferred to Elumalai and Raghul Agency to open a petrol pump before being recovered.Other findings show how the payment trail itself could be weakened. Some block-level federations opened additional bank accounts without approval and failed to produce them for audit. Cash withdrawals exceeded Rs 20 lakh in some blocks, while original bills and bank reconciliation records were often missing, show RTI replies.In Gudiyatham, a block mission manager (BMM) signed the digital payment list (electronic clearing service) for a Rs 10.9 lakh cheque although only higher-ups such as block level federation (BLF) secretary and treasurer were authorised.TNCDW officials said Rs1.43 crore has been recovered from those who irregularly transferred funds to their own or relatives’ accounts.Ramakrishnan, however, asked why FIRs had not followed in other cases where departmental records described fund misuse or sought recovery. “This govt came to power by promising action against corruption and they should allow the special audit team to complete their work in remaining blocks soon. They are at present facing huge resistance from officers,” he said.TNCDW managing director M Aarthi did not respond to questions on action taken on audit findings in other districts and the status of further recoveries.