A sub-postmaster in Madhya Pradesh's Sagar district allegedly spent depositors' money to the tune of Rs 1.25 crore on IPL betting, an official said on Wednesday.

The accused, Vishal Ahirwar (36), was arrested on May 20 after matter came to light earlier this month when some people contacted the sub-post office, located in a railway premises here, on the completion of their fixed deposit (FD) terms, Government Railway Police police station in-charge Ajay Dhurve said.

The depositors were shocked when the post office employees told them that their FD numbers and account numbers were not existing in the records and there were no FDs in their names, he said.

When the depositors repeatedly visited the sub-post office for next few days to enquire about their investments, they were told that the sub-post master had allegedly put their money into an IPL betting racket app offering to multiply it fast, the official said.

Ahirwar was then suspended, following which the depositors complained to police against him.

Based on the complaints of the depositors, the police arrested Ahirwar on May 20, the GRP official said.

During questioning, Ahirwar told the police that he had invested the depositor's money into the IPL betting racket app that promised quick and rich dividends, the official said.

The husband of a woman, Varsha, had deposited Rs nine lakh in the post office. However, she lost her husband and father-in-law during COVID-19 crisis, another official said.

An elderly woman, Kishori Bai, had deposited Rs 5 lakh in the post office for arranging funds for the marriage of her four daughters, but she is now left with nothing, he said.

Another senior citizen, Parmanand Sahu, who had deposited his retirement benefit amount in the post office considering it as the safest investment option, is now running from pillar to post to recover the money, the official said.

Following Ahirwar's questioning, names of 20 victims have so far come to light who have been allegedly duped of about Rs 1.25 crore, Dhurve said.

A case has been registered against Ahirwar under Indian Penal Code Sections 420 (cheating) and 408 (criminal breach of trust by clerk or servant), the official said.

Since the incident has came to light, some more people have also approached police to inform about their investments made in the sub-post office, he added.