Sambalpur: Police in Sambalpur on Friday arrested two persons linked to a major financial fraud, involving the alleged misappropriation of Rs 3.67 crore from the Odisha Excise Department.
The arrests were made following a complaint filed by the department’s Deputy Commissioner. The accused are Sandeep Kumar Pattnaik (38), a suspended junior assistant, and Sarat Chandra Behera (65), a retired official.
The funds were transferred to other retired ASIs and a junior clerk. While Rs 23.46 lakh in cash was recovered from the duo, three bank ac
counts totaling Rs 44 lakh — one with Rs 14 lakh, another with Rs 20 lakh, and the third with Rs 10 lakh — have also been frozen,” Sambalpur SP Mukesh Kumar Bhamoo told reporters.
He added that further investigation is underway to ascertain the full extent of the irregularities.
The fraud came to light during a routine audit, which uncovered irregularities. The embezzlement is suspected to have taken place between 2022 and 2025. A formal complaint was registered on March 9, 2026, at the Ainthapali police station.
According to the police, fraudulent sanction orders were issued via the Integrated Financial Management System (IFMS) portal in the name of retired official Achyuta Dehury, allowing unauthorised withdrawals of pension and salary arrears for a prolonged period. Further scrutiny also uncovered manipulation of records such as bill registers and cash books, as well as suspicious high-value transactions and fund transfers.