A massive financial scam has rocked the Alusua and Mahima Nagar areas under the Infocity police station in North Bhubaneswar, leaving 42 members of six women’s self-help groups (SHGs) burdened with a collective debt of approximately Rs 1.5 crore.
The accused, Ajay Mohanty, allegedly siphoned off loans taken in the names of these women from banks and microfinance companies, using the funds for personal ventures, including opening a bookstore. The revelation of the fraud led to a heated protest at the Infocity police station, resulting in injuries to a female Sub-Inspector (SI) and a villager, Arati Nayak, amid clashes with the police.
The scam came to light when loan agents approached the villagers for monthly repayments, only to find that the women were unaware of the loans taken in their names. Each member faces a debt of Rs 2-3 lakh, plunging them into financial distress. Enraged by the betrayal and the subsequent court transfer of the accused, the victims stormed the police station, damaging furniture and confronting officers. The chaos escalated when villagers clashed with police, leading to injuries and a road blockade.
According to police reports, Mohanty formed an SHG and manipulated the women into believing they were part of a legitimate loan scheme. Instead, he misappropriated the funds for personal use. After the scam was exposed, Mohanty attempted to flee to Chennai with his family on April 13, 2025, but was apprehended near the KISS Jagannath Temple in Mahima Nagar following a tip-off. He has since been remanded to judicial custody.
The victims, including Sasmita Nayak, Barsa Nayak, Sandhya Bhanja, and Arati Nayak, expressed frustration over the lack of transparency in the loan approval process by banks like SKS Bank and Bharat Finance. They questioned how loans were sanctioned without their knowledge or presence. The police have assured that Mohanty will not be granted bail until 60% of the defrauded amount is deposited in court, which would then be returned to the victims. However, distrust persists, with villagers demanding clarity on how they will recover their losses.
To control the situation, three Assistant Commissioners of Police, three station officers, and a platoon of police were deployed. After hours of negotiations, the authorities managed to calm the protesters by explaining the legal process for fund recovery. Despite a temporary de-escalation, tensions remain high, with fears of renewed protests. A senior officer privately admitted to feeling unsafe at the station but refrained from public comment.
This incident highlights systemic flaws in the banking and microfinance sectors, raising questions about accountability and oversight. The affected women, primarily from marginalised communities, are now seeking justice and financial relief, urging stricter measures to prevent such fraud in the future.
