3 more govt employees held for Rs 9.24cr embezzlement; no. of arrests goes up to 9

Bhubaneswar: Vigilance officials on Saturday arrested three more persons in connection with the alleged embezzlement of over Rs 9.24 crore from the roads and buildings (R&B) department, taking the total number of arrests in the case to nine.The latest arrests include a senior accountant of the district treasury office in Bhubaneswar, Krushna Chandra Behera; a senior assistant currently posted in the R&B division in Puri, Biswanath Das; and Kumud Sahoo, a peon attached to R&B division-I here. All three were produced in the special vigilance court.According to investigators, the fraud involved preparation and clearance of fake bills in the names of retired employees, through which gratuity, leave salary and other benefits were illegally diverted to bank accounts linked to the accused and their associates. Earlier, six persons, including a section officer and a junior assistant — Banalata Mohanty and Bibhudatta Nayak — identified as the key conspirators, were arrested.The probe revealed that out of the Rs 9.24 crore fraud, the treasury official allegedly received Rs 3.9 lakh through 11 online transactions between March 2025 and July 2026 to facilitate passage of fraudulent bills without raising objections.The Vigilance inquiry also found that between financial years 2022-23 and 2025-26, Nayak and Mohanty, in conspiracy with others, generated fake sanction orders and fraudulent bills in the names of retired employees and against contingency funds.Investigators alleged that the forged bills were processed through the Integrated Financial Management System (IFMS) using substituted bank account details, enabling the accused to siphon off govt money. While genuine beneficiaries were excluded, funds were routed to bank accounts belonging to relatives, acquaintances and associates of the accused.Altogether 77 bank accounts linked to 48 persons, including family members and associates of the accused, were reportedly used to receive the diverted funds. Portions of the money were later transferred back to the main accused or withdrawn in cash and handed over to them.Like the senior assistant, Sahoo also allegedly shared his wife’s bank account details, into which over Rs 11.25 lakh was credited as provisional gratuity. The amount was subsequently transferred to his own account and withdrawn in cash in multiple instalments.Vigilance officials said the investigation is continuing to trace the money trail and identify any additional beneficiaries involved in the large-scale public fund misappropriation.Like the senior assistant, Sahoo also allegedly shared his wife’s bank account details, into which over Rs 11.25 lakh was credited as provisional gratuity. The amount was subsequently transferred to his own account and withdrawn in cash in multiple instalments.Vigilance officials said the investigation is continuing to trace the money trail and identify any additional beneficiaries involved in the large-scale public fund misappropriation.You Can Also Check: Gold Rate in Bhubaneswar | Silver Rate in Bhubaneswar | Bank Holidays in Bhubaneswar | Public Holidays in Bhubaneswar | Petrol Price in Bhubaneswar | Diesel Price in Bhubaneswar | CNG Price in Bhubaneswar | LPG Price in BhubaneswarStay updated with the latest Bhubaneswar news. Download the TOI App.