Bhubaneswar: Odisha Vigilance on Wednesday arrested Matruprasad Mohanty, branch head of Jana Small Finance Bank, Bhadrak, for his alleged involvement in a major misappropriation of government funds linked to the Office of the Block Education Officer in Korei, Jajpur district.
Officials said the fraud caused a loss of Rs 5,56,11,495 to the government exchequer. The accused was produced before the Court of the Special Judge, Vigilance, Cuttack.
The investigation revealed an alleged nexus between Matruprasad and his father, Pradip Kumar Mohanty, a retired headmaster who was re-engaged at the BEO office.
Pradip Kumar allegedly gained unauthorized access to the Human Resource Management System (HRMS) and targeted the IDs of 13 retired teachers, according to an Odisha Vigilance release.
He reportedly falsified records to show the pensioners as active employees and prepared monthly pension bills in their names.
Officials said the funds were routed through multiple transactions into accounts held by him and his family members in different branches of the State Bank of India. The alleged fraud continued for nearly six years, from November 2018 to September 2024.
A case has been registered at Cuttack Vigilance Police Station under Case No. 11/2026 under Sections 13(2) read with 13(1)(a) of the Prevention of Corruption (Amendment) Act, 2018, along with Sections 409, 477-A, and 120-B of the IPC.
Investigation into the case is ongoing. The fraud involved the manipulation of HRMS records to generate fake pension bills in the names of retired teachers. The misappropriated funds were diverted through multiple bank accounts linked to the accused and his family members. The alleged illegal activity spanned nearly six years, from November 2018 to September 2024.
