Cheating government

You can bring the notice to the commissioner of the concerned departments. The commissioners will take action. Submit your clear complaint with evidences. You may get rewards.

Yes government employees will be liable under prevention of corruption act if any connivance with the private person accused comes on record. They will be liable under Indian Penal Code if any loss is occurred to the Exchequer. They will be liable u/s 420 for cheating, if any forged documents are submitted by the accused then 467, 468 will be attracted and if there is any falsification of accounts with the help of such documents then 471 of Indian Penal Code will be attracted. For Government Employees u/s 13(1)(d) r/w 13(2) of Prevention of Corruption Act.

Note: If they are Central Government employees then CBI will investigate the matter, if State Government employees are involved then Anti Corruption Bureau(ACB).