Bank Official Arrested in ₹5.56 Crore Government Fund Embezzlement Case in Odisha

Bhubaneswar: In a major crackdown on corruption, the Odisha Vigilance has arrested the Branch Head of Jana Small Finance Bank, Bhadrak, Matruprasad Mohanty, for his alleged involvement in a massive embezzlement of government funds amounting to ₹5.56 crore.

The fraud targeted the Office of the Block Education Officer (BEO) in Korei of Jajpur district, causing a financial loss of ₹5,56,11,495.

According to Vigilance officials, the scam was the result of a well-planned conspiracy between Matruprasad Mohanty and his father, Pradip Kumar Mohanty, a retired headmaster who was re-engaged at the BEO office. Pradip allegedly gained unauthorized access to the Human Resource Management System (HRMS) and manipulated records of 13 retired teachers by falsely marking them as “active” employees.

He subsequently generated monthly pension bills in their names and diverted the funds through multiple transactions into bank accounts belonging to himself, his son, and other family members. These accounts were reportedly maintained across various branches of the State Bank of India (SBI).

The fraudulent operation is believed to have continued for nearly six years, from November 2018 to September 2024.

A case has been registered against Matruprasad Mohanty under the Prevention of Corruption Act, 2018, along with relevant sections of the Indian Penal Code. He has been taken into custody and will be produced before the court today.

The arrest comes amid intensified anti-corruption efforts in the state, with the Vigilance Department recently uncovering a separate case involving a record ₹4 crore cash seizure from a deputy director of mines.