The CRPF has ordered an internal inquiry against one of its top officers for allegedly misappropriating funds allocated for anti-terror operations in Jammu and Kashmir and diverting the money to stock market investments through hawala channels using a shell company.

“A complaint has been received against an officer. It is being handled in accordance with established procedures, especially Central Vigilance Commission (CVC) guidelines. Further information may be collected about the progress in due course,” CRPF director-general G.P. Singh told The Telegraph.

Sources said the officer under the scanner was a 1996-batch Telangana-cadre woman IPS officer who was now posted as inspector-general in the CRPF. The allegations pertain to the period between 2018 and 2019 when the accused officer was posted in Jammu and Kashmir.

The officer is accused of misappropriating nearly ₹10 crore and funnelling it into stocks and mutual funds. Sources said the funds, intended to bolster the effectiveness of counter-terrorism operations, were allegedly diverted through a network of shell companies.

The officer is primarily accused of introducing a centralised ration procurement system for all units under the Srinagar sector headquarters and allegedly favouring select suppliers in exchange for commissions in cash.

In the complaint, the officer is accused of accepting commissions from the suppliers preferred through a centralised procurement process during her tenure in Jammu and Kashmir. It has been alleged that the officer carried out a hawala transaction of ₹10 crore through a Singapore-based firm that invested in a shell company indirectly controlled by her through relatives.

"The officer allegedly invested ₹10 crore in a shell company through hawala channels via an offshore entity in Singapore, utilising unaccounted funds, and subsequently invested the proceeds in mutual funds," a CRPF official said.