Odisha Vigilance arrests two officials in ₹30 lakh MBPY pension fund scam
Synopsis
Two panchayat-level officers in Puri district have been arrested for siphoning over ₹30 lakh from Odisha's Madhu Babu Pension Yojana — funds meant for the elderly, disabled, and destitute. The arrests follow a similar crackdown on MGNREGS fraud just 48 hours earlier, suggesting a systematic sweep of welfare fund mismanagement across the state.
Key Takeaways
Odisha Vigilance arrested Sulamani Jani and Tuna Pradhan , both former PEOs in Puri district , on 3 July .
The duo allegedly misappropriated a combined ₹30,78,620 from the Madhu Babu Pension Yojana (MBPY) between 2022 and 2025 .
Jani is accused of diverting ₹15,74,820 ; Pradhan allegedly misappropriated ₹15,03,800 .
Cases registered under the Prevention of Corruption (Amendment) Act, 2018 and Section 316(5) BNS at Bhubaneswar Vigilance Police Station.
On 1 July , two engineers were separately arrested for allegedly misappropriating ₹42 lakh from MGNREGS funds in Kandhamal district .
Odisha Vigilance on Friday, 3 July arrested two government employees for allegedly misappropriating over ₹30 lakh in public funds earmarked for vulnerable beneficiaries under the state's flagship social security programme, the Madhu Babu Pension Yojana (MBPY). The arrests were made in connection with two separate but related cases of systematic financial fraud spanning 2022 to 2025.
Who Was Arrested
The two accused are Sulamani Jani, former Panchayat Executive Officer (PEO) of Gadamrugsira and Jamarsuan gram panchayats under Sadar Block in Puri district, currently attached to the Sadar Block Office, and Tuna Pradhan, former PEO of Sahupada gram panchayat under Kanas Block in Puri district, now attached to the Gop Block Office.
According to a senior vigilance official, 'The accused duo is implicated in two separate cases of systematic financial fraud, collectively misappropriating government funds to the tune of ₹30,78,620 earmarked for vulnerable beneficiaries under the Madhu Babu Pension Yojana (MBPY).'
How the Fraud Was Carried Out
An extensive investigation by Odisha Vigilance revealed that both officials exploited their administrative positions between 2022 and 2025 to divert pension disbursements meant for elderly, disabled, and destitute individuals. Rather than distributing the funds to eligible recipients, the accused allegedly retained undisbursed amounts for personal gain.
Jani is accused of misappropriating ₹15,74,820, while Pradhan allegedly diverted ₹15,03,800, according to the official statement. Both amounts were intended for MBPY beneficiaries who are among the state's most economically marginalised populations.
Cases Registered
Odisha Vigilance has registered two cases — numbered 13/26 and 14/26 — at the Bhubaneswar Vigilance Police Station. The accused have been charged under Sections 13(2) and 13(1)(a) of the Prevention of Corruption (Amendment) Act, 2018, as well as Section 316(5) of the Bharatiya Nyaya Sanhita (BNS).
A Pattern of Social Scheme Fraud
This arrest comes just two days after another major enforcement action. On 1 July, Odisha Vigilance arrested two engineers in Kotagarh block of Kandhamal district for allegedly misappropriating ₹42 lakh in funds meant for development projects under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). That alleged fraud reportedly spanned three financial years, from 2023-24 to 2025-26.
The back-to-back crackdowns signal an intensified scrutiny of government welfare fund management across Odisha's panchayat-level administration. With multiple arrests within 72 hours targeting different schemes and districts, the anti-corruption drive appears to be widening in scope.
Point of View
Not just individual dishonesty. Odisha Vigilance's back-to-back arrests across MBPY and MGNREGS within 72 hours suggest either a coordinated enforcement push or a backlog of cases finally moving. Either way, the question mainstream coverage is not asking is: how many similar cases remain uninvestigated across Odisha's 6,000-plus gram panchayats?
NationPress
3 Jul 2026
Frequently Asked Questions
What is the Madhu Babu Pension Yojana (MBPY)?
The Madhu Babu Pension Yojana is Odisha's flagship state social security scheme that provides financial assistance to elderly, disabled, and destitute individuals. The scheme consolidates several earlier pension programmes and is administered through gram panchayats across the state.
Who were arrested in the MBPY scam and what did they do?
Sulamani Jani and Tuna Pradhan, both former Panchayat Executive Officers in Puri district, were arrested on 3 July for allegedly retaining and diverting pension funds meant for MBPY beneficiaries. Together they are accused of misappropriating ₹30,78,620 between 2022 and 2025.
What charges have been filed against the accused?
Cases have been registered under Sections 13(2) and 13(1)(a) of the Prevention of Corruption (Amendment) Act, 2018, and Section 316(5) of the Bharatiya Nyaya Sanhita (BNS) at the Bhubaneswar Vigilance Police Station. Two separate case numbers — 13/26 and 14/26 — have been filed.
Is this connected to other recent Odisha Vigilance arrests?
Yes. Just two days earlier, on 1 July, Odisha Vigilance arrested two engineers in Kotagarh block, Kandhamal district, for allegedly misappropriating ₹42 lakh from MGNREGS funds over three financial years (2023-24 to 2025-26). The arrests are separate cases but reflect a broader enforcement sweep.
Who are the victims of the MBPY fraud?
The funds misappropriated were meant for elderly, disabled, and destitute individuals enrolled under the Madhu Babu Pension Yojana in gram panchayats of Puri district. These are among Odisha's most economically vulnerable citizens.
