In a major crackdown on corruption, the Odisha Vigilance has arrested a bank official for his alleged role in a ₹5.56 crore embezzlement case involving government funds meant for the education sector.

Bank Branch Head Held in Major Fraud

The आरोपी, Matruprasad Mohanty, Branch Head of Jana Small Finance Bank in Bhadrak, was apprehended for his involvement in misappropriating funds from the Office of the Block Education Officer (BEO), Korei in Jajpur district.

According to officials, the fraud caused a financial loss of ₹5,56,11,495 to the government.

Father-Son Nexus Uncovered

Investigations revealed a well-planned conspiracy involving the accused’s father, Pradip Kumar Mohanty, a retired headmaster who was re-engaged at the BEO office.

The duo allegedly collaborated over several years to siphon off government funds using forged records and illegal system access.

Modus Operandi: HRMS Manipulation and Identity Theft

The Vigilance probe uncovered a sophisticated fraud mechanism:

• Unauthorized Access: Pradip Mohanty illegally accessed the Human Resource Management System (HRMS).

• Targeting Pensioners: IDs of 13 retired teachers were misused.

• Fake Employment Records: Pensioners were falsely shown as active employees.

• Fraudulent Bills: Monthly salary/pension bills were generated in their names.

Money Trail Through Multiple Accounts

The siphoned funds were routed through multiple bank accounts to conceal the fraud. These included accounts held by:

• Pradip Kumar Mohanty

• Matruprasad Mohanty

• Other family members

Several transactions were traced across branches of State Bank of India (SBI), indicating a deliberate attempt to launder the money.

Six-Year Fraud, Case Registered

The embezzlement reportedly took place over nearly six years, from November 2018 to September 2024.

A case has been registered under the Prevention of Corruption Act, 2018, along with relevant sections of the IPC at Cuttack Vigilance Police Station (Case No. 11/2026).

Accused Forwarded to Court

Matruprasad Mohanty has been arrested and is being produced before the court. Officials confirmed that further investigation is underway to identify the full extent of the fraud and any additional الأشخاص involved.

Probe Continues

The Odisha Vigilance stated that the investigation is ongoing and more revelations are expected as officials examine financial records and digital evidence.

The case highlights serious loopholes in system monitoring and raises concerns over misuse of government financial systems.

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