Tightening its grip on high-level corruption, the Odisha Vigilance Directorate has arrested three more government functionaries—including a senior treasury staffer—in connection with the massive Rs 9.24 crore financial fraud at the office of the Superintending Engineer (SE), Roads & Building (R&B) Division-I, Bhubaneswar.
The newly arrested individuals have been identified as:
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Krushna Chandra Behera, Senior Accountant, District Treasury Office, Bhubaneswar
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Biswanath Das, Senior Assistant, R&B Division, Puri (formerly Junior Assistant at R&B Division-I, Bhubaneswar)
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Kumud Sahoo, Peon, Office of the SE, R&B Division-I, Bhubaneswar
All three were produced before the Hon’ble Court of Special Judge, Vigilance, Bhubaneswar. With these fresh arrests, the total number of persons remanded to judicial custody in this case has risen to nine, following the arrest of six accused—including prime suspects Smt. Banalata Mohanty (Section Officer) and Bibhudutta Nayak (Junior Assistant)—on September 27, 2026.
PhonePe Kickbacks to Pass Fake Bills
Extensive investigation into Bhubaneswar Vigilance PS Case No. 21/2026 revealed an intricate network of illegal transfers designed to siphon off public funds amounting to Rs 9,24,10,193/-.
According to Vigilance officials, the prime accused, Junior Assistant Bibhudutta Nayak, routinely bribed Senior Accountant Krushna Chandra Behera to ensure fake and fraudulent bills passed through the treasury without objections. Between March 2025 and July 2026, Nayak transferred Rs 3,90,000/- directly to Behera via PhonePe across 11 separate transactions.
Diverting Gratuity & Pension Funds to Kin Accounts
The investigation further exposed how officials used bank accounts belonging to family members and relatives as dummy receptacles for illegal funds listed under provisional gratuity, unused leave salary, and contingency heads:
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Biswanath Das (Senior Assistant): While previously posted at R&B Division-I, Das provided the bank details of his mother (Nayana Das), his relative (Kanhu Charan Behera), and his own account to the main accused. Approx. Rs 50 lakhs was credited to his mother’s account, Rs 15 lakhs to his relative’s account, and Rs 37 lakhs to his personal account. Das then routed portions back to Nayak and Mohanty via PhonePe and withdrew the rest in cash.
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Kumud Sahoo (Peon): Sahoo provided his wife’s (Bijuli Sahoo) bank details to the main conspirators. A sum of Rs 11,25,120/- meant for provisional gratuity was credited to her account. Sahoo subsequently transferred the money to his own account and withdrew it in cash across three instalments.
Ongoing Investigation
The case has been registered under Section 13(2) read with 13(1)(a) of the Prevention of Corruption (Amendment) Act, 2018, along with relevant sections of the Bharatiya Nyaya Sanhita (BNS), including Sections 316(5), 318(4), 336(3), 338, 340(2), and 61(2).
Vigilance officials confirmed that further probe into the money trail, additional accomplices, and asset verification is currently underway.
