States » EastPosted at: Sep 26 2026 9:48PM


Fake gratuity, leave bills used to eat up Rs 9.24 crore Odisha govt funds

Bhubaneswar, Sep 26 (UNI) Odisha Vigilance has uncovered a Rs 9.24-crore government fund embezzlement allegedly carried out by generating fake sanction orders and bills and routing the money through 77 bank accounts of 48 people, including relatives and associates of two employees of the R&B Division-I office here.
The fraud allegedly took place between 2022-23 and 2025-26, when Section Officer Banalata Mohanty and Junior Assistant Bibhudutta Nayak, both attached to the Establishment Section of the Superintending Engineer, R&B Division-I, allegedly conspired with others to create fraudulent bills.
According to Vigilance, the fake bills were raised in the names of retired employees towards provisional gratuity and unutilised leave salary, besides bogus claims against the office contingency fund. The bills were then illegally processed through the Integrated Financial Management System (IFMS) to siphon off government funds.
Investigators found that while genuine bills contained the actual beneficiaries’ bank details, the fraudulent bills carried substituted account numbers belonging to relatives, acquaintances and other associates of the accused.
The misappropriated funds were credited to 77 accounts held by 48 individuals, including the son and driver of Mohanty and relatives and associates of Nayak. Some of the recipients allegedly transferred portions of the money back to the accused or withdrew cash and handed it over to them.
Following detection of the fraud, Rs 3.96 crore of the embezzled amount has been recovered by the administrative authority, Vigilance said.
A case has been registered at Bhubaneswar Vigilance police station against Mohanty, Nayak and others under the Prevention of Corruption Act and relevant provisions of the Bharatiya Nyaya Sanhita.
Investigation is continuing.
UNI MK SS
Tags: #Fake gratuity# leave bills used to eat up Rs 9.24 crore Odisha govt funds
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