In a significant crackdown on financial irregularities targeting government pension schemes, the Odisha Vigilance on Wednesday arrested Matruprasad Mohanty, the Branch Head of Jana Small Finance Bank in Bhadrak, for his alleged role in a massive Rs 5,56,11,495 embezzlement scam.
The fraud, which spanned nearly six years from November 2018 to September 2024, involved the misappropriation of funds meant for the Office of the Block Education Officer (BEO), Korei, in Jajpur district. The accused reportedly colluded with his father, Pradip Kumar Mohanty, a retired Headmaster who was re-engaged at the BEO office.
According to the Vigilance investigation, Pradip Kumar Mohanty illegally accessed the Human Resource Management System (HRMS) and targeted the identities of 13 retired teachers (pensioners). By manipulating records to falsely depict these retirees as “active” in service, he prepared and processed fraudulent monthly pension bills in their names.
The embezzled funds were then systematically laundered through a series of transactions into bank accounts held by Pradip Kumar Mohanty, his son Matruprasad Mohanty, and other family members across various branches of the State Bank of India (SBI).
The Odisha Vigilance has registered a case vide Cuttack Vigilance PS Case No. 11/2026 under relevant sections of the Prevention of Corruption Act, 2018, and provisions of the Indian Penal Code (IPC) against Matruprasad Mohanty. He was arrested today and is being produced before the Court.
The investigation remains ongoing to uncover the full extent of the fraud, trace any additional beneficiaries, and recover the misappropriated amount. Further developments are awaited as the probe progresses.
