Balasore, July 2: A shocking case of alleged fraud involving a government welfare scheme has surfaced in Odisha's Balasore district, where a Common Service Centre (CSC) operator has been accused of siphoning off ₹2 lakh from the insurance compensation meant for the widow of a deceased construction worker.
The incident has raised serious concerns over the misuse of government welfare schemes by middlemen, who allegedly exploit beneficiaries despite repeated complaints to the authorities. Under the state's welfare scheme, the family of a registered construction worker is entitled to receive ₹3 lakh as insurance compensation in the event of the worker's death. However, allegations have emerged that unscrupulous individuals are illegally appropriating a major portion of the amount, leaving the actual beneficiaries with only a fraction of the sanctioned assistance.
The alleged fraud came to light in Kukudia village under Barabatia Gram Panchayat in Bhograi block of Balasore district.
According to reports, Sanjay Kumar Mandal, a poor construction worker from Kukudia village, died on March 11, 2025. Following his death, a local CSC operator, identified as Janmejaya Panda (CSC ID: 425363130014), reportedly approached the bereaved family, claiming he would help them secure the insurance compensation.
As Sanjay's widow, Kanakalata, was unfamiliar with the official procedures, she submitted all the required documents to the CSC operator. He allegedly facilitated the opening of a bank account and issuance of a cheque book at the Punjab National Bank branch in Chandaneswar, but retained possession of both the passbook and cheque book.
On May 2, the Odisha government credited ₹3 lakh to Kanakalata's account as insurance assistance. However, investigators allege that Panda forged her signature on a cheque and withdrew ₹2 lakh from the account without her knowledge.
The alleged fraud came to light only when Kanakalata recently visited the bank to verify her account balance. After discovering the unauthorized withdrawal, she collected her passbook and cheque book from the CSC operator and lodged a written complaint at the Chandaneswar police outpost.
Police outpost officer Ban Bihari Satpathy has initiated an investigation into the matter. Sources claimed that after the complaint was filed, the accused allegedly attempted to settle the matter privately with the complainant.
When contacted over the phone, Janmejaya Panda reportedly denied acting alone and claimed that part of the money had to be shared with "higher authorities," suggesting the possible involvement of others in the alleged scam. However, this claim has not been independently verified.
Residents alleged that Kanakalata is not the only victim and that several poor beneficiaries may have been similarly cheated while availing government welfare benefits through intermediaries.
The incident has triggered demands for strict legal action against those involved in the alleged fraud. Locals have also urged the police to register a formal criminal case, conduct a thorough investigation, and expose any larger racket operating behind the misappropriation of welfare funds meant for vulnerable beneficiaries.
