In a major financial irregularity case in Odisha, a branch manager of the Koraput Central Co-operative Bank has been arrested in Malkangiri district for allegedly misappropriating government funds exceeding ₹1 crore.
The arrest was made by vigilance authorities following an investigation into suspected financial misconduct.
According to officials, the accused is alleged to have embezzled funds collected from farmers as part of crop loan repayments. These transactions were linked to five Large Area Multi-Purpose Societies (LAMPS) operating within the district. The funds, which were meant to be securely deposited, were reportedly diverted, leading to significant financial discrepancies.
Vigilance authorities in Koraput registered two separate cases to probe the alleged misappropriation. After preliminary findings indicated irregularities in fund handling, the branch manager was taken into custody for further questioning. Investigators are now working to determine the full extent of the financial fraud and whether additional individuals may have been involved.
The case has raised concerns among farmers and stakeholders, as the misappropriated funds were directly tied to agricultural credit systems designed to support rural livelihoods. Officials have assured that a thorough investigation is underway to ensure accountability and recovery of funds wherever possible.
Authorities have not ruled out further action as the probe continues, with a focus on identifying procedural lapses and strengthening safeguards against similar incidents in the future.
