Odisha Vigilance Detains Bank Executive Over ₹5.56 Crore Fraud Allegations
Synopsis
Odisha Vigilance has arrested a bank official for allegedly embezzling over ₹5.56 crores from government funds, in collusion with his retired teacher father. The investigation reveals a complex fraud scheme targeting retired teachers.
Key Takeaways
Odisha Vigilance arrested a bank official for fraud.
The embezzlement involved over Rs 5.56 crore of government funds.
The accused collaborated with his retired teacher father.
The fraudulent scheme targeted pension payments for retired teachers.
Legal action is underway with a case registered against the accused.
Bhubaneswar, March 18 (NationPress) In a significant development, Odisha Vigilance apprehended a private bank official on Wednesday for his alleged role in the embezzlement of more than Rs 5.56 crore of government funds, in collusion with his father, a retired educator.
The official, identified as Matruprasad Mohanty, served as the Branch Head of Jana Small Finance Bank located in Bhadrak.
This fraudulent activity originated from the office of the Block Education Officer (BEO) in Korei, Jajpur district, leading to a total financial loss of Rs 5,56,11,495.
According to sources within Vigilance, investigations revealed a complex scheme between Matruprasad and his father, Pradip Kumar Mohanty, a retired headmaster who had been re-engaged at the BEO office.
During his tenure there, Pradip Kumar reportedly accessed the Human Resource Management System (HRMS) without authorization, targeting the accounts of 13 retired teachers.
By manipulating official records to falsely represent these retirees as still “active” in service, he generated and processed monthly pension payments in their names.
This deceptive method allowed him to misappropriate funds over an extended period, systematically channeling the money through various transactions. Eventually, these funds were deposited into bank accounts associated with him and his family across multiple branches of the State Bank of India (SBI), effectively obscuring the money trail.
The fraudulent activities persisted for nearly six years, spanning from November 2018 to September 2024.
After the fraud was uncovered, the Education Department referred the case to Odisha Vigilance.
As a result, an investigation was promptly initiated, leading to the arrest of Matruprasad on Wednesday.
During the inquiry, investigators determined that a considerable portion of the defrauded funds had been transferred to Matruprasad’s bank account.
A manhunt is currently ongoing to locate the primary accused, Pradip Kumar, as quickly as possible.
A case (11/26) has been filed at the Cuttack Vigilance Police Station under applicable sections of the Prevention of Corruption (Amendment) Act, 2018, along with relevant provisions of the Indian Penal Code.
Point of View
Both by a bank official and a retired educator, emphasizing the importance of accountability in public service. As the investigation continues, it is crucial to address the systemic vulnerabilities that allowed such fraud to occur.
NationPress
7 Aug 2026
Frequently Asked Questions
Who was arrested in the Odisha embezzlement case?
Matruprasad Mohanty, a bank official, was arrested for his involvement in the embezzlement of government funds.
What amount was allegedly embezzled?
The alleged embezzlement amounts to over Rs 5.56 crore.
Who else is involved in this case?
The investigation revealed that Matruprasad's father, Pradip Kumar Mohanty, a retired teacher, was also involved.
How long did the fraudulent activities last?
The fraud was carried out over nearly six years, from November 2018 to September 2024.
What legal actions have been taken?
A case has been registered at the Cuttack Vigilance Police Station under the Prevention of Corruption Act and the Indian Penal Code.
