Odisha Police Detains Businessman in DMFT Fraud Scheme
Synopsis
In a significant crackdown, the Odisha Police's EOW has arrested businessman Brajesh Mishra for his alleged role in a multi-crore DMFT fund fraud, revealing the complex web of deceit involving forged cheques and interstate fraud networks.
Key Takeaways
Arrest of Brajesh Mishra for involvement in DMFT fund fraud.
Fraud amounting to Rs 9.56 crore allegedly siphoned off through forged cheques.
Investigation reveals complex fraud network operating across multiple Indian states.
EOW has blocked significant funds and continues to investigate.
Previous arrests made in connection with the fraud case.
Bhubaneswar, March 19 (NationPress) The Odisha Police's Economic Offences Wing (EOW) has detained a businessman in connection with a significant fraud case involving the District Mineral Foundation Trust (DMFT) funds in Mayurbhanj district, as confirmed by a senior EOW official on Thursday.
The individual, Brajesh Mishra, owner of Mishra Enterprises and Mahakal Construction, was taken into custody on Tuesday, March 17, in Chhattisgarh, as part of the EOW Police Station Case No. 5/24.
After his apprehension, he was presented before a local court in Chhattisgarh and later transported to Bhubaneswar under transit remand. He is expected to appear before the designated OPID court in Balasore on March 20.
The EOW assumed control of the case that was initially registered at the Bhanjapur Police Station in Mayurbhanj district on April 19, 2024, following a complaint by Sujata Kanungo, Chief Manager of Bank of India, Baripada.
The complaint highlighted the illicit withdrawal of Rs 9.56 crore from the DMFT account of the Zilla Parishad, Mayurbhanj, through four forged cheques on April 10 and 18, 2024.
Investigative efforts uncovered that the fraudsters utilized cloned cheques to misappropriate funds into accounts belonging to PT Constructions & Supplier and S.K. Enterprises at various banks. The diverted funds were then transferred through a series of layered transactions to obscure their origins.
“The investigation revealed that the savings account for the Zilla Parishad, Mayurbhanj, is held with Bank of India, Baripada branch under the District Mineral Foundation Trust. The fraudsters managed to transfer a total of Rs 9,56,76,600 into two separate accounts in the names of PT Constructions & Supplier, with Bank of Maharashtra, and S.K. Enterprises, with Punjab & Sindh Bank,” stated EOW sources.
To date, EOW officials have successfully blocked Rs 5.04 crore, while Rs 13.56 lakh across 33 accounts has been frozen. Probe findings suggest that Rs 98.30 lakh and Rs 49.19 lakh were transferred to accounts associated with Mishra’s businesses, with Rs 14.19 lakh directed to his personal account, while the remaining funds were further diverted.
During the investigation, it was found that the embezzled amounts had been redirected to several other accounts linked to PT Constructions & Supplier and S.K. Enterprises.
EOW officials reported that Mishra is part of a sophisticated interstate fraud network that has been operating in Chhattisgarh, Madhya Pradesh, Jharkhand, West Bengal, and Odisha for the past four years. The group reportedly employed cheque cloning, complex transactions, and multiple bank accounts to execute this extensive scam.
Previously, law enforcement apprehended three individuals—Pomesh Tembhare, Ghanshyam Ahuja, and Ajmir Mondal—in connection with this case.
Frequently Asked Questions
What is the DMFT fund?
The District Mineral Foundation Trust (DMFT) fund is designed to manage and utilize funds collected from mining activities for the welfare of the local community.
Who is Brajesh Mishra?
Brajesh Mishra is the proprietor of Mishra Enterprises and Mahakal Construction, and he has been arrested in connection with a fraud involving DMFT funds.
What was the total amount embezzled in this case?
The total amount embezzled is reported to be Rs 9.56 crore.
What tactics did the fraudsters use?
The fraudsters used cloned cheques and layered transactions to siphon off funds from the DMFT account.
What actions have been taken by the EOW?
The EOW has blocked Rs 5.04 crore and frozen Rs 13.56 lakh across 33 accounts as part of the investigation.
