On the basis of verification and enquiry into allegations of misappropriation of public funds, *Odisha Vigilance has registered a case relating to the embezzlement of government funds amounting to Rs. 9,24,10,193/- (Rupees Nine Crore Twenty-Four Lakh Ten Thousand One Hundred Ninety-Three) at the Office of the Superintending Engineer (SE), Roads & Buildings (R&B) Division-I, Bhubaneswar*.
During investigation, *it has been revealed that between FY 2022–23 and FY 2025–26, accused persons Smt. Banalata Mohanty, Section Officer, and Sri Bibhudutta Nayak*, Junior Assistant both attached to the Establishment Section of the O/o the SE, R&B Division-I, Bhubaneswar in conspiracy with unknown associates, fraudulently generated fake sanction orders and bills. These bills pertained to provisional gratuity, unutilized leave salary in the names of retired employees, and ingenuine claims against the office contingency fund. These fraudulent bills were illegally and unauthorizedly processed in the Integrated Financial Management System (IFMS) to siphon of the government money.
While genuine bills carried authentic beneficiary bank details, the forged bills contained substituted bank account numbers belonging to relatives, acquaintances, etc. A total of 77 bank accounts belonging to 48 individuals, including the son, the driver, and associates of Smt. Banalata Mohanty, brothers and relatives of Sri Bibhudutta Nayak were used to receive the misappropriated funds. The account holders subsequently transferred some money back to the primary accused or withdrew cash to hand over to them. After detection of the embezzlement and initiation of enquiry into the matter, Rs.3.96 crores of misappropriated amount has been recovered by the administrative authority.
In this connection, Bhubaneswar Vigilance PS Case No 21 dated 25.09.2026 has been registered against Smt Mohanty, Sri Nayak and others under Prevention of Corruption Act,1988 and Sections 316(5)/318(4)/336(3)/338/340(2)/61(2) of the BNS, 2023.
Investigation into the case continues.
