Bhadrak, March 19: In a major crackdown on financial irregularities, the Vigilance department has arrested a bank official for allegedly embezzling government funds to the tune of ₹5.56 crore. The accused has been identified as Matruprasad Mohanty, Branch Head of Jana Small Finance Bank, Bhadrak.
According to officials, the fraud was linked to the Korei Block Education Officer (BEO) office, where government funds were allegedly misappropriated through fraudulent means.
The Vigilance investigation revealed that the accused was aided by his father, Pradeep Kumar Mohanty, a re-engaged retired headmaster working in the BEO office. He allegedly manipulated the Human Resource Management System (HRMS) by gaining unauthorized access.
In a well-planned scheme, identities of 13 retired teachers (pensioners) were misused and falsely shown as active employees. Fake monthly pension bills were generated in their names, and the funds were siphoned off into multiple accounts linked to the accused.
Officials said the fraud continued for nearly six years, from November 2018 to September 2024, before coming to light.
Following the investigation, the Vigilance team arrested Matruprasad Mohanty and produced him before the court. Further probe into the case is underway.
