Patna: The state government has given sanction for the prosecution of additional district magistrate of Bhagalpur Rajeev Ranjan Singh in connection with the case related to the illegal transfer of government funds to the accounts of non-government organisation Srijan Mahila Vikas Sahyog Samiti Limited.

Rajeev is at large ever since fraudulent withdrawal of over Rs 1,000 crore surfaced in Bhagalpur in August last year. Sources said Rs 260 crore was illegally transferred to Srijan's account from that of the land acquisition officer when Rajeev was the land acquisition officer in Bhagalpur.

The CBI, which is probing the scam, had sought permission from Bihar to initiate action against Rajeev. On Saturday, the general administration department issued a notification, granting sanction to the CBI to initiate action against the officer. Rajeev held the public grievance redress officer's post when he went into hiding.

A senior official of the general administration department said Rajeev, a Bihar Administrative Service officer, was scheduled to retire from service on August 31, 2017, three weeks after the scam came to the fore. "Since then he is absconding," he said, adding that a copy of the prosecution sanction against Rajeev has also been sent to the Bhagalpur district administration.

The special investigation team of Bhagalpur police had earlier conducted raids in Patna, Bhagalpur and Samastipur to track Rajeev but in vain. Later, all the cases related to the government funds transfer scam were handed over to the CBI.

Sources said Rajeev had bought a plot in Patna to set up a school. He also owned a flat in Delhi's National Capital Region. The CBI is set to submit chargesheet against some other accused soon.