Odisha EOW arrests two more in ₹9.56 crore DMFT fund scam
Synopsis
Two proprietors arrested in Raipur are the latest additions to a sprawling multi-state gang that allegedly used forged cheques to siphon ₹9.56 crore from a DMFT welfare account in Mayurbhanj — money meant for mining-affected communities. With six arrests now made and ₹5.04 crore blocked, the EOW says the gang has been running similar scams for four years across five states.
Key Takeaways
The Odisha EOW arrested Surjit Roy and Sameer Srivastav from Raipur, Chhattisgarh on 21 May 2025 .
The duo are proprietors of Roy Associates and SS Traders respectively, and received diverted funds of ₹45.19 lakh and ₹39.19 lakh .
The fraud involved four forged cheques used to withdraw ₹9,56,76,600 from the Mayurbhanj Zilla Parishad's DMFT account on 10 April and 18 April 2024 .
The EOW has blocked ₹5.04 crore and frozen ₹13.56 lakh across 33 bank accounts .
Investigators say the accused belong to a larger gang active across Chhattisgarh, Madhya Pradesh, Jharkhand, West Bengal , and Odisha for at least four years .
A total of six accused have now been arrested in the case, including four in earlier phases.
The Odisha Police's Economic Offences Wing (EOW) has arrested two more accused in the ₹9.56 crore District Mineral Foundation Trust (DMFT) fund embezzlement case, in which fraudulent withdrawals were made from a Bank of India account in Mayurbhanj district. The arrests bring renewed focus on what investigators describe as a multi-state organised fraud network operating for at least four years.
Who Was Arrested and Where
The two newly arrested accused, Surjit Roy and Sameer Srivastav — proprietors of Roy Associates and SS Traders respectively — were apprehended from Raipur, Chhattisgarh, on 21 May 2025. They were produced before a local court in Raipur and subsequently brought to Bhubaneswar on transit remand.
How the Fraud Was Carried Out
According to EOW officials, the case was originally registered at Bhanjapur police station in Mayurbhanj following a complaint by Sujata Kanungo, Chief Manager of Bank of India's Baripada branch. She alleged that fraudulent transactions totalling ₹9,56,76,600 were executed from the DMFT account of the Mayurbhanj Zilla Parishad using four forged cheques on 10 April and 18 April 2024.
Investigators found that the cloned and forged cheques were used to transfer funds into two accounts — PT Constructions and Supplier, maintained with Bank of Maharashtra, and S.K. Enterprises, maintained with Punjab and Sindh Bank. The money was then layered across multiple accounts in different states to obscure its trail.
Funds Traced and Frozen
The EOW has so far blocked ₹5.04 crore of the defrauded amount and frozen ₹13.56 lakh across 33 bank accounts. Investigators established that ₹45.19 lakh was transferred from PT Constructions and Supplier to Roy Associates, while ₹39.19 lakh went to SS Traders — directly linking the two newly arrested accused to the diverted funds.
A Multi-State Gang, Four Years of Operations
'These accused persons are members of a larger gang having complex networking in different states like Chhattisgarh, Madhya Pradesh, Jharkhand, West Bengal, and Odisha. After their arrest, EOW has got important clues about the entire gang. They are doing these scams for the last four years,' an EOW official said.
Four other accused in the same case had been arrested by the EOW in earlier phases of the investigation. The latest arrests signal that the probe is widening beyond Odisha's borders, with the inter-state dimension adding complexity to the prosecution.
What Comes Next
With key members of the alleged network now in custody, the EOW is expected to pursue further arrests and asset recovery. The case underscores systemic vulnerabilities in the handling of DMFT funds — mineral-linked welfare money meant for communities in mining districts — and is likely to prompt scrutiny of account-monitoring protocols at public sector banks.
Frequently Asked Questions
What is the Odisha DMFT fund scam?
It is a ₹9.56 crore embezzlement case in which fraudsters used four forged cheques to withdraw funds from the District Mineral Foundation Trust account of the Mayurbhanj Zilla Parishad, held with Bank of India's Baripada branch, on 10 April and 18 April 2024. The money was then layered across multiple accounts in several states.
Who are the two newly arrested accused?
The two accused are Surjit Roy, proprietor of Roy Associates, and Sameer Srivastav, proprietor of SS Traders. They were arrested from Raipur, Chhattisgarh, on 21 May 2025 and brought to Bhubaneswar on transit remand.
How much money has been recovered so far?
The EOW has blocked ₹5.04 crore of the defrauded amount and frozen ₹13.56 lakh across 33 bank accounts. A significant portion of the ₹9.56 crore total remains unrecovered.
How many people have been arrested in the case so far?
Six people have been arrested in total — four in earlier phases of the investigation and two more, Surjit Roy and Sameer Srivastav, on 21 May 2025.
What is the DMFT and why does this fraud matter?
The District Mineral Foundation Trust is a statutory fund created under the Mines and Minerals (Development and Regulation) Act to benefit communities affected by mining operations. Fraudulent diversion of these funds directly harms some of the most vulnerable populations in mineral-rich districts like Mayurbhanj.
