Odisha Vigilance Arrests Bank Official In Rs 5.56 Crore Embezzlement Case

RunWithRugs · 2026-03-19T01:10:33+00:00

Odisha Vigilance arrested Matruprasad Mohanty, a bank official, for misappropriating over Rs 5.56 crore in government funds alongside his father, a retired teacher. They committed fraud by falsifying records and diverting pension payments for nearly six years.

RunWithRugs

2026-03-19 01:10:33

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(MENAFN- IANS) Bhubaneswar, March 18 (IANS) Odisha Vigilance on Wednesday arrested an official of a private bank for his alleged involvement in misappropriating over Rs 5.56 crore of government funds in connivance with his father, a retired teacher.

According to Vigilance sources, the accused bank official, identified as Matruprasad Mohanty, was the Branch Head of Jana Small Finance Bank in Bhadrak.

The fraud was carried out at the office of the Block Education Officer (BEO), Korei, in Jajpur district, resulting in a total loss of Rs 5,56,11,495.

“The investigation by Odisha Vigilance revealed a sophisticated collaboration between the accused Matruprasad and his father, Pradip Kumar Mohanty, a retired headmaster re-engaged at the BEO office,” said a senior Vigilance official.

The prime accused, Pradip Kumar, during his re-engagement at the BEO office, allegedly gained unauthorised access to the Human Resource Management System (HRMS) and targeted the IDs of 13 retired teachers (pensioners).

By falsifying official records to show these retirees as still“active” in service, he generated and processed monthly pension bills in their names.

Using this fraudulent method over an extended period, he siphoned off funds and routed the money through a series of transactions. The funds were ultimately diverted into bank accounts held by him and his family members across various branches of the State Bank of India (SBI), concealing the trail.

The fraud spanned nearly six years, from November 2018 to September 2024.

Vigilance sources said that after the fraud came to light, the Education Department referred the matter to Odisha Vigilance.

Subsequently, Odisha Vigilance initiated an investigation and arrested Matruprasad on Wednesday.

Investigators also ascertained during the probe that a significant portion of the defrauded amount was transferred to Matruprasad’s account.

Police have launched a manhunt to nab the prime accused, Pradip Kumar, at the earliest.

A case (11/26) has been registered at the Cuttack Vigilance Police Station under relevant sections of the Prevention of Corruption (Amendment) Act, 2018, and the Indian Penal Code.

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