Odisha Vigilance Uncovers ₹9.24 Crore Embezzlement Scandal Involving Clerical Staff at Engineering Office

The Hindu•Published: Sep 27, 2026 04:08 PM IST

The Odisha Vigilance Directorate has exposed a major financial fraud involving the siphoning of ₹9.24 crore from the Office of the Superintending Engineer in Bhubaneswar. Clerical staff allegedly conspired to process fake bills for gratuity and leave salaries, diverting government funds into 77 unauthorized bank accounts linked to their associates and family members.

Fraudulent Methodology: Accused staff members Banalata Mohanty and Bibhudutta Nayak generated fake sanction orders and substituted beneficiary bank details within the Integrated Financial Management System.
Network of Accounts: A total of 77 bank accounts belonging to 48 individuals, including relatives, drivers, and colleagues, were used to launder the misappropriated government funds.
Ongoing Recovery: Following the detection of the scam, administrative authorities have successfully recovered ₹3.96 crore of the embezzled money while investigations continue.

The Context & Background

This investigation covers financial activities occurring between the 2022–23 and 2025–26 fiscal years. The case highlights significant vulnerabilities in the state's financial management systems that allowed employees to bypass standard verification protocols.

Why it matters:This case exposes critical security gaps in government financial management systems, raising concerns about the integrity of public fund disbursement. The recovery of nearly ₹4 crore underscores the importance of rigorous vigilance and auditing processes in preventing large-scale corruption within state departments.

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