Rs 3.67 Crore Fraud Unearthed in Sambalpur Excise Office; Two Arrested
Sambalpur: A major financial irregularity involving the alleged embezzlement of government funds has surfaced at the Excise Office in Sambalpur (Northern Division), with authorities estimating the fraud at Rs 3.67 crore.
According to police, the fraud spans nearly three years, from November 2022 to October 2025, during which unauthorized withdrawals were made from the Excise Department. The case was registered at Ainthapali Police Station on March 9, 2026. Initially booked under Sections 316(5)/3(5) of the Bharatiya Nyaya Sanhita (BNS), the charges were later expanded to include Sections 316(5), 336(3), 340(2), 344, 3(5), and 61(2) following an audit report that revealed serious financial discrepancies.
Police have arrested two individuals in connection with the case — Sandeep Kumar Pattnaik (38), a suspended Junior Assistant, and Sarat Chandra Behera (65), a retired official. Investigators suspect that the duo conspired with another retired official, Achyuta Dehury, to siphon off government funds.
As per the investigation, the accused allegedly generated fake sanction orders through the Integrated Financial Management System (IFMS) portal in the name of the retired official. This enabled them to carry out unauthorized withdrawals of pension and salary arrears over a prolonged period. Officials also detected manipulation of financial records, including bill registers and cash books, along with multiple suspicious high-value transactions.
During the probe, authorities seized cash worth Rs 23.46 lakh, identified Rs 14 lakh deposited in a DDO account, and froze around Rs 30 lakh across multiple bank accounts, including those linked to Achyuta Dehury at UCO Bank. The financial trail is currently being examined in detail.
Police allege that the accused misused their official positions to manipulate records and divert public funds for personal gain, causing substantial loss to the state exchequer. Further investigation is underway to uncover additional links, recover more funds, and ascertain whether more individuals were involved in the fraud network.
