The Odisha Vigilance has intensified its crackdown on the massive financial fraud at the Works Department’s Road and Building (R&B) Division-1 in Bhubaneswar, arresting four additional employees on Sunday.
With these latest arrests, the total number of individuals apprehended in the staggering Rs 9.24 crore embezzlement scam has risen to six.
The four individuals arrested on Sunday include office peons Deepak Kumar Routray and Laxman Biswal, along with two outsourced data entry operators, Rajib Lochan Senapati and Soumya Ranjan Mohapatra. According to investigators, these four suspects worked directly under previously arrested Section Officer Banalata Mohanty and Junior Assistant Bibudatta Nayak, playing crucial roles in routing and concealing the misappropriated government funds.
How the Scam Operated
Preliminary investigations reveal that between the financial years 2022-23 and 2025-26, the primary accused—Section Officer Mohanty and Junior Assistant Nayak—masterminded a systematic loot of public funds. They allegedly generated fake bills and forged work orders under the names of retired employees and office contingency expenditures, successfully clearing them through the Integrated Financial Management System (IFMS).
Instead of routing payments to legitimate beneficiaries, the embezzled funds were funnelled into 77 different bank accounts associated with 48 individuals, including family members, relatives, and close associates.
Where the Money Went
The four suspects arrested on Sunday received significant portions of the looted money directly into their personal bank accounts:
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Deepak Kumar Routray (Peon): Rs 32,47,800
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Laxman Biswal (Peon): Rs 16,21,484
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Rajib Lochan Senapati (Outsourced DEO): Rs 28,28,817
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Soumya Ranjan Mohapatra (Outsourced DEO): Rs 35,69,098
Account holders typically withdrew cash or retained a commission before returning the remainder of the funds to the masterminds. Following the exposure of the scam, administrative authorities have successfully frozen and recovered approximately Rs 3.96 crore.
All six accused have been produced before the court as the anti-corruption wing continues its sweeping probe under the Prevention of Corruption Act and relevant sections of the Bharatiya Nyaya Sanhita (BNS). The widespread collusion has triggered public demands for stricter digital surveillance and stringent auditing across all state government offices.
