Three Contractors Arrested in Odisha LED Street Light Scam; Vigilance Probes ₹3 Crore Misappropriation

Probe into LED street light project uncovers alleged financial irregularities, missing equipment, and violations of tender norms across three districts.

The Odisha Vigilance Department on Thursday arrested three contractors for their alleged involvement in the misappropriation of nearly ₹3 crore in the implementation of LED street lighting projects in Kendujhar, Nayagarh, and Jajpur during the previous BJD government.

According to Vigilance officials, the arrests followed a detailed inquiry into LED street light installations carried out during 2021-22 and 2022-23 under the project titled “Implementation of LED Street Lighting System in One Village of Each Gram Panchayat on a Turnkey Basis, including Comprehensive Annual Maintenance Contract (CAMC).” The project was funded through grants from the 5th State Finance Commission (SFC).

Investigation Reveals Missing Components

Vigilance ASP Anupama Mohapatra said a joint technical verification found that the contractors had allegedly misappropriated public funds by raising bills for equipment that was never installed. Around 1,000 clusters, each comprising 10 LED street lights, were examined across the three districts.

The investigation revealed that several essential components—including energy meters, 500-metre cables, MCCBs, eye hooks, suspension clamps, dead-end clamps, and photo-switch timers—were missing from multiple installation sites despite being shown as installed in official records.

Large-Scale Probe Underway

Three separate cases have been registered against the accused under the Prevention of Corruption Act, 1988, and relevant sections of the Indian Penal Code (IPC).

To intensify the investigation, the Vigilance Department has deployed 24 teams comprising 81 officers, including Additional SPs, DSPs, and Inspectors. Technical inspections are currently underway at 50 locations across Kendujhar, Nayagarh, and Jajpur to determine the full extent of the alleged fraud.

Officials are also examining project files and fund disbursal records to identify the involvement of government officials and other agencies. The Vigilance Department suspects that the alleged irregularities involved fraudulent billing and deliberate misuse of public funds, with further arrests and legal action possible as the investigation progresses.

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