Bhubaneswar: In a major anti-corruption crackdown, Odisha Vigilance has unearthed embezzlement of public funds to the tune of Rs 9.24 crore and arrested two officials posted in the Establishment Section of the Office of the Superintending Engineer, Roads & Buildings (R&B) Division-I, Bhubaneswar in this connection.
The accused were identified as section officer, Banalata Mohanty, and junior assistant, Bibhudutta Nayak.
Modus Operandi
Investigations revealed that between FY 2022–23 and FY 2025–26, the accused, in conspiracy with associates, fraudulently generated fake sanction orders and bills to divert government funds. These included provisional gratuity, unutilised leave salary in the names of retired employees, and fabricated contingency claims.
The forged bills were then processed through the Integrated Financial Management System (IFMS), diverting government funds into private accounts.
Authorities confirmed that 77 bank accounts belonging to 48 individuals, including relatives, acquaintances and associates of the two accused, were used to siphon off the funds. Beneficiaries later transferred portions back to the accused or withdrew cash to hand over directly.
The total misappropriated amount stands at ₹9,24,10,193, of which ₹3.96 crore has already been recovered by the Vigilance authority.
Following detection of the fraud, Vigilance registered a police case against Mohanty, Nayak and others under the Prevention of Corruption Act, 1988 and relevant provisions of the BNS.
Searches and further investigation are underway to trace additional assets and identify all the beneficiaries involved in the embezzlement.
