Odisha Vigilance arrests 3 contractors in ₹3 crore LED streetlight scam
Synopsis
Odisha Vigilance arrested three contractors on 25 June for allegedly siphoning ₹3 crore from gram panchayat LED streetlight funds across three districts. With around 1,000 lighting clusters under technical scrutiny and files seized to trace government-servant involvement, this case could widen significantly beyond the three accused.
Key Takeaways
Odisha Vigilance arrested 3 contractors on 25 June for alleged misappropriation of ₹3 crore in LED streetlight funds.
The accused are Girija Sankar Dash (M/s Transpower), Dharanidhar Sahoo (M/s Biraja Electrical and Constructions), and Bibhuti Ranjan Biswal (M/s Jogamaya Traders Pro).
Contracts were executed across Kendujhar , Nayagarh , and Jajpur districts during financial years 2021-22 and 2022-23 .
Approximately 1,000 clusters of 10 LED lights each are being technically examined for shortfalls.
Three separate FIRs filed under the Prevention of Corruption Act, 1988 and the Indian Penal Code ; investigation into government-servant involvement is ongoing.
Odisha Vigilance on Thursday, 25 June arrested three contractors for allegedly misappropriating approximately ₹3 crore in government funds earmarked for LED street lighting installations across gram panchayats in Kendujhar, Nayagarh, and Jajpur districts between 2021 and 2023. The accused were forwarded to the respective Vigilance Courts following their arrest.
Who Was Arrested
The three accused have been identified as Girija Sankar Dash of Baripada, Mayurbhanj district, proprietor of M/s Transpower; Dharanidhar Sahoo of Jajpur town, owner of M/s Biraja Electrical and Constructions; and Bibhuti Ranjan Biswal of Bhubaneswar, owner of M/s Jogamaya Traders Pro. All three were awarded contracts in the respective districts and are identified as the primary accused in the misappropriation cases.
Scale and Mechanism of the Alleged Fraud
According to Odisha Vigilance, the scheme involved approximately 1,000 clusters — each comprising 10 LED lights — spread across the three districts. The installations were funded through 5th State Finance Commission devolution grants during the financial years 2021-22 and 2022-23. A preliminary estimate places the total misappropriation at around ₹3 crore, though the figure is subject to revision as technical examination of each cluster continues.
Vigilance officials noted that experts are currently examining all clusters to generate evidence of shortfalls and misappropriation at each site. Files related to the alleged scam have also been seized to trace the fund-disbursement mechanism and determine whether government servants were involved.
Legal Action Initiated
Odisha Vigilance has registered three separate cases at the Vigilance Cell Police Station under various sections of the Prevention of Corruption Act, 1988 and the Indian Penal Code. The inquiry was formally launched on Wednesday after reliable information was received about alleged irregularities and embezzlement of public funds in the LED lighting works.
Broader Context
This is not the first time that gram panchayat infrastructure funds in Odisha have come under scrutiny. Devolution grants from State Finance Commissions — intended to strengthen rural infrastructure — have periodically been flagged for diversion and under-execution. The Vigilance directorate's move to examine all 1,000 clusters technically signals an intent to build a comprehensive, evidence-backed case rather than rely solely on paper-trail irregularities. The investigation remains ongoing, and the role of government officials in the disbursement chain is yet to be formally established.
Point of View
Weak on-ground monitoring, and funds routed through multiple tiers make verification difficult. What distinguishes this inquiry is the decision to technically examine all 1,000 clusters, which could build a more airtight case than a paper-trail investigation alone. The more consequential question is whether the probe will follow the money upstream to the government officials who cleared payments — without that, contractor arrests alone rarely deter the next cycle of diversion.
NationPress
25 Jun 2026
Frequently Asked Questions
What is the Odisha LED streetlight scam about?
Odisha Vigilance uncovered an alleged misappropriation of approximately ₹3 crore in government funds meant for LED street lighting installations in gram panchayats across Kendujhar, Nayagarh, and Jajpur districts between 2021 and 2023. Three contractors were arrested on 25 June for their alleged role in the fraud.
Who are the three contractors arrested by Odisha Vigilance?
The arrested contractors are Girija Sankar Dash of Baripada (proprietor of M/s Transpower), Dharanidhar Sahoo of Jajpur town (owner of M/s Biraja Electrical and Constructions), and Bibhuti Ranjan Biswal of Bhubaneswar (owner of M/s Jogamaya Traders Pro). All three were awarded contracts in the respective districts.
What funds were allegedly misappropriated?
The funds came from the 5th State Finance Commission devolution grants, allocated for LED street lighting works during the financial years 2021-22 and 2022-23. The preliminary estimate of misappropriation stands at approximately ₹3 crore across around 1,000 lighting clusters in three districts.
What legal action has been taken?
Odisha Vigilance has registered three separate cases at the Vigilance Cell Police Station under the Prevention of Corruption Act, 1988 and the Indian Penal Code. The accused were forwarded to the respective Vigilance Courts after their arrest.
Is the investigation still ongoing?
Yes. Experts are technically examining all 1,000 LED clusters across the three districts to establish evidence of shortfalls at each site. Vigilance officials have also seized files to determine the fund-disbursement mechanism and whether government servants were involved in the alleged fraud.
