Income Tax Dept Probe Shows a Private Company 'Controls' Bihar Govt Recruitment, High-Ranking Officials Involved

Patna: One year ago, in June 2024, Ranjan Kumar, who was the principal director (investigation) of the Income Tax department in Patna at that time, addressed a letter to Brajesh Mehrotra, the chief secretary of the Bihar government, attempting to draw his attention to a major scam. 

In his correspondence, the principal director wrote that two firms, Urmila International Service Private Limited and Urmila Infosolution, had a "virtual monopoly" over contract recruitment for several departments within the Bihar government.

The Income Tax department reported that these companies were also implicated in the paper leak scandal. 

In an extensive letter, spanning over 50 pages, the Income Tax department's principal director enumerated a multitude of employees, ranging from high-ranking officials in the Bihar government to district-level staff, who allegedly received bribes, lavish Diwali gifts, and gold and silver coins from the company to secure contractual positions in various departments.

According to the Income Tax department, these firms charged candidates between Rs 15,000 and Rs 50,000.

Income tax department document.

The letter stated that these companies supply employees for various positions in the offices and departments of the Bihar government and collect fees from the participants who secured the jobs.

The letter states that during the course of search and post search investigation (by the Income Tax department), some shocking facts were discovered which strongly suggest involvement of Kumar Avinash and Urmila International Services Private Limited in recruitment process of contractual staffs on various posts under Government of Bihar by adopting illegal means and thus hijacking the whole recruitment process and collecting illegal money as well as further distributing it to different offices/departments and other related persons.

The IT department requested "strong action" be taken against Kumar Avinash (the proprietor of Urmila Infosolutions) and Urmila International Services Pvt. Ltd. "so that the corruption in the recruitment process of contractual staff may be curbed and integrity of the recruitment process could be upheld."

Income Tax Department's letter to the Chief Secretary.

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In part one of this series by The Wire Hindi, we examine the mechanisms behind this fraud. Subsequent instalments will investigate key officials who have benefitted from the company's alleged misconduct and who received undue financial advantages from it in land deals.

Two companies are central to this fraud. As per Ranjan Kumar, "Urmila International Services Private Limited is a company and Kumar Avinash is the Director of the company with 98% of the shares. Urmila Infosolutions is the proprietorship concern of Kumar Avinash."

The Income Tax department conducted raids on Kumar Avinash's office, residence, and other locations on February 8, 2024. Urmila International's office is situated in Rajiv Nagar, Patliputra Colony, Patna. Avinash's residence is located on Ambedkar Path, near Bailey Road, Patna.

Kumar Avinash's home on Bailey Road, Patna. Photo: Ashutosh Kumar Pandey

The letter from the Income Tax department's principal director contains WhatsApp conversations between Kumar Avinash and several individuals. Ranjan Kumar also mentioned a seized diary that contains numerous transactions and is signed by Kumar Avinash.

Speaking to The Wire Hindi, Kumar Avinash confirmed that his offices were raided and that items were seized. He stated, "It is the duty of the Income Tax; they have the authority to conduct raids anywhere. What is the big deal? This is standard procedure for the Income Tax."

While he refuted other claims, The Wire Hindi's investigation reveals that the allegations made by the Income Tax department are not unfounded.

Some of the key allegations outlined in the letter are:

Control over the recruitment process

The Bihar State Electronics Development Corporation Limited (Beltron) is a Bihar government enterprise. As per Beltron's official website, it "offers manpower support to various departments of the Bihar government" and "supplies data entry operators, programmers, and other skilled personnel to enhance departmental functions."

The Income Tax department asserts that Kumar Avinash's company exerted influence over recruitments carried out through Beltron, thereby ensuring the placement of its own candidates in multiple departments.

The Income Tax department has levelled serious allegations against Beltron.

Beltron is not the lone culprit

The names of various other departments and their officials are mentioned in documents seized by the Income Tax department, to whom Urmila International allegedly gave bribes and luxurious gifts.

Kumar Avinash admitted that he had purchased the gifts but asserted that none of the officials accepted them. "We used to collaborate with them, so we believed it was appropriate to offer them gifts. We purchased the gifts and intended to offer them, but they declined to accept," Avinash said.

In Avinash's mobile phone, the contact for a certain "Manish New Vineet" is stored. The department claims that messages exchanged between the two in August 2023 suggest that the company interfered in the recruitment process and was also involved in paper leaks.

For instance, at one point, Manish writes, "Just be careful, Sir... I have clearly been told, if the paper is leaked, do not return home again..."

"Because Sir will be out of Patna for the entire following week... someone else will set the questions."

Kumar Avinash confirmed that Manish was employed by his company but claimed that the discussion pertained to an "internal exam" for candidates.

Nevertheless, the Income Tax department asserts that the issue was related to government recruitment.

The Wire Hindi spoke with an official from the Income Tax department who is involved in the Urmila International investigation. He stated, "We were unable to investigate such cases further because the issue of paper leaks did not fall within our jurisdiction...it was outside the scope of the Income Tax Department. This was a corruption case that should have been investigated by other agencies. But the government did not pursue it further."

In contrast, Kumar Avinash asserts that he is not part of the recruitment process.

He mentioned, "We do not engage in recruitment at all. Any recruitment that takes place is handled by the department itself. Our role is limited to managing the payroll."

However, his assertion seems unconvincing. In an interview with a media outlet, Kumar Avinash himself said, "Currently, we are engaged in the whole gamut of the Flexi Manpower Business, which ranges from the provision of highly skilled professionals like doctors and paramedical professionals to the provision of low-level workers like sweepers, peons, and housekeepers."

The interview further elaborates:

Urmila International Services has within a short time, "expanded to become the biggest manpower provider in Bihar, eventually leading an annual business of almost Rs 500 crores annual turnover."

Moreover, Avinash overlooks the fact that payroll management is a vital function. The company responsible for payroll establishes the relationship between employees and the organisation.

"Payroll delineates the relationship between any company and its workforce. Employees receive allowances and benefits such as travel, accommodation, transportation, health, etc., based on their position and salary. This process is referred to as payroll management," explained a senior government official in Patna.

Kumar Avinash also acknowledged in his statement to the department on February 10, 2024, that his company holds contracts with Beltron and various departments for the supply of manpower.

He further mentioned, "I hold a contract with the Bihar State Health Department, which encompasses around 3,500 data management units... In addition, I have contracts with multiple departments across different states, each with distinct service fees... I also provide personnel to non-governmental organizations."

He elaborated that these recruitments take place in two ways: either "previously employed" individuals are "re-appointed," or "in instances where we need to supply manpower ourselves, our company evaluates the candidates, and the interviews are carried out by the department, while we oversee the payroll of the chosen candidates."

It is evident that they offer human resources to various departments.

Kumar Avinash.

Bribery in the recruitment process

The Income Tax department has claimed that Kumar Avinash charges participants between Rs 15,000 and Rs 50,000 for recruitment services.

In his statement to the department on February 10, 2024, Kumar Avinash admitted to receiving payments from each participant.

This is further corroborated by the statement provided to the department by Ashutosh Nandan Singh, the then District Information Officer of Samastipur. The Income Tax Department reports that he confirmed Kumar Avinash's practice of recruiting candidates in exchange for money.

Ashutosh Nandan Singh's statement included in the Income Tax documents.

Currently, Ashutosh Nandan Singh holds the position of District Information Officer in Darbhanga.

In his statement on oath recorded on March 28, 2024 during the course of post-search investigations, Singh said, "Mukesh is the middleman for recruitment of candidates through Urmila. He collects money from candidates and sends it to Kumar Avinash and his company".

In his statement to the Income Tax Department on March 28, 2024, Singh also remarked, "We aimed to recruit our relatives and close associates through this company. They (Urmila International) charged Rs 25,000 from candidates for the selection process."

As per this statement, Nandan Singh got six candidates recruited in Madhubani and 15 in Darbhanga across various departments in 2020.

Department records also document WhatsApp exchanges between Ashutosh Nandan Singh and Kumar Avinash.

On December 14, 2020, Ashutosh Nandan sent a message to Kumar Avinash stating – ‘36000×15’. The department interprets this as an indication that Rs. 5,40,000 was charged for the recruitment of 15 students.

In a similar vein, a WhatsApp message to Kumar Avinash dated April 25, 2021, indicates that money were collected from 60 candidates for recruitment purposes. This is confirmed by Ashutosh Nandan Singh's statement to the IT Department, which states that Avinash received Rs 15,00,000 at a rate of Rs 25,000 per candidate.

Speaking to The Wire Hindi, Ashutosh Nandan Singh acknowledged the involvement of Urmila International in the hiring process, yet he refuted any claims of monetary exchanges.

"I reached out to them to assist my relatives and friends in securing employment. I did not engage in any financial transactions with anyone,” he said. "I contacted Kumar Avinash regarding job opportunities because I have known him for many years, since the time he was an election vendor."

He further stated, "I have had no communication with Avinash since this entire episode...He requested that I withdraw any statements I made. I informed him that I would not retract my statement, and we have not communicated since then."

In his statement to the IT department on February 10, 2024, Kumar Avinash admitted that 'Ashutosh Singh operates a computer operator training institute and has been a friend of mine. However, since 2022, I have been involved in a financial dispute with him... We had previously established an agreement to recruit trained students from his institute across Bihar, under which Rs. 15,000 per candidate was collected in cash as placement fees.'

Collusion between top officials and tainted companies

In a correspondence addressed to the chief secretary, the Income Tax department stated, "During the course of investigation, it is found that Mr. Kumar Avinash is involved in illegal gratification to government officials by obliging them with huge amount of cash as well as gold and silver bullions/coins/ornaments for doing favour to him and his company UISPL."

Speaking to The Wire Hindi, Kumar Avinash admitted that he had purchased these gifts for the officials, yet he asserted that they declined to accept them. "We worked with them, so we thought we ought to gift them something. But, no one accepted (the gifts)," Avinash stated.

The IT department has alleged that the officials received lavish gifts on the occasion of Diwali.

It has been over a year since the IT department dispatched its letter to the chief secretary, yet the company's influence remains so formidable that despite such a significant raid and serious allegations, there has been no reaction in the state.

Meanwhile, the company continues to prosper. This company, which began with a modest investment, has now achieved a total turnover of Rs 650 crore.

The Wire Hindi spoke with officials from the IT Department in Patna who are investigating the case. They stated that their role was solely to conduct the investigation and that they had provided all necessary documents to the Bihar government for subsequent action. The responsibility for the outcome lay with the government.

The former chief secretary, Brajesh Mehrotra, informed The Wire Hindi that he has since retired and advised us to reach out to the current chief secretary concerning the case. We submitted a comprehensive questionnaire to chief secretary Amrit Lal Meena, who responded that he had forwarded the questionnaire to the Information and Public Relations Department of the Bihar government on July 28. Upon contacting the Public Relations Department, we were informed that they had no information regarding the issue.

We have also sent detailed inquiries to Beltron, but are yet to receive a reply.

Shruti Sharma contributed to this report.

This report was published in the original Hindi by The Wire Hindi on August 30, 2025, and has been translated into English by Naushin Rehman. 

Read part two of this series here.

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