Bhubaneswar, March 19 (NationPress) On Thursday, the Odisha Vigilance apprehended the principal suspect along with his spouse in a significant government fund embezzlement scandal amounting to ₹5.56 crore.

The main perpetrator, Pradip Kr Mohanty, a retired headmaster who was re-engaged at the Block Education Officer (BEO) Office after retirement, along with his wife Gitarani Mohanty, had been evading capture, frequently changing locations within Odisha and West Bengal. They were apprehended by an Odisha Vigilance team early Thursday morning, according to a senior official.

Acting on the suspicion that the couple was hiding in Kolkata, the Odisha Vigilance dispatched a team to conduct raids on suspected locations. Anticipating police action, they departed Kolkata on Wednesday night and took refuge in a hotel in Charampa, located in the Bhadrak district of Odisha, where they were eventually arrested.

As of now, they are under interrogation regarding the case. Reports indicate that the misappropriated funds were transferred into the personal accounts of Pradip Mohanty, his wife, their son Matruprasad Mohanty (who was arrested the previous day), and others. The investigation is ongoing, according to sources from Odisha Vigilance.

Matruprasad Mohanty served as the Branch Head of Jana Small Finance Bank in Bhadrak. The fraudulent activities originated from the Block Education Officer's office in Korei, located in Jajpur district, leading to a total loss of ₹5,56,11,495.

According to a senior vigilance official, the investigation revealed a complex scheme involving Matruprasad and his father, Pradip Kumar Mohanty. During his re-engagement at the BEO office, Pradip allegedly gained unauthorized access to the Human Resource Management System (HRMS) and targeted the accounts of 13 retired teachers receiving pensions.

By falsifying official records to maintain the appearance that these retirees were still 'active' in service, he generated and processed monthly pension bills in their names. This fraudulent method was employed over an extended period, allowing him to siphon off funds and transfer the money through various transactions. Ultimately, the funds were diverted into bank accounts held by him and his family across multiple branches of the State Bank of India, effectively concealing the financial trail.

The fraudulent activities spanned nearly six years, from November 2018 to September 2024. Following the revelation of the fraud, the Education Department referred the case to Odisha Vigilance, which subsequently initiated an investigation and led to the arrest of Matruprasad on Wednesday.