Bhubaneswar, April 3 (NationPress) In a significant development, the Sambalpur police in Odisha have apprehended two Excise Department officials, including a former Excise Assistant Sub-Inspector (ASI), in connection with a massive fraud case involving the embezzlement of government funds exceeding Rs 3.67 crore over a span from 2022 to 2025, as stated by Mukesh Kumar Bhamoo, the Superintendent of Police for Sambalpur district, on Friday.

The individuals arrested in this fraud scheme have been named as Sandeep Kumar Pattnaik, a junior assistant currently under suspension, and Sarat Chandra Behera, a retired Excise ASI.

Additionally, police sources indicated that another suspect in this case, retired Excise ASI Achyuta Dehury, remains at large. Serious financial discrepancies were uncovered during an audit of the Excise Department’s financial documentation by authorities, including the Principal Accountant General (A&E), Odisha.

Following the submission of a formal report by Ashok Kumar Seth, I/C Deputy Commissioner of Excise (Northern Division), Sambalpur, the Ainthapali police initiated a case (73/26) on March 9 and commenced an investigation into the extensive fraud.

The investigation revealed that numerous unauthorized sanction orders were processed through the IFMS portal for the benefit of the retired Excise ASI Achyuta Dehury, resulting in illegal withdrawals of pensions and salary arrears between November 2022 and October 2025. The official records, including bill registers and cash books, were also discovered to be improperly maintained and manipulated.

“Bank account analyses during the investigation indicated suspicious high-value transactions, including significant cash withdrawals and transfers to associates, which pointed towards the misappropriation and diversion of government funds,” the police reported.

The accused Pattnaik, who was responsible for establishment matters, was taken into custody on March 28 for his role in the misappropriation of government funds amounting to Rs 3.67 crore.

Furthermore, the police arrested another suspect, Behera, a retired ASI, on March 31. The individuals involved, by misusing their official positions, allegedly altered financial records, fabricated sanctions, and diverted government funds, resulting in a wrongful loss to the state treasury while enriching themselves.

Thus far, the police have seized Rs 23,46,500 from the possession of Pattnaik, and an additional Rs 44 lakh from the total defrauded amount has been frozen in various accounts by the police.