BHUBANESWAR: Authorities in Odisha have arrested a retired headmaster and his wife in a ₹5.56 crore embezzlement case involving alleged manipulation of pension records and diversion of public funds over nearly six years.
Arrests in a Long-Running Embezzlement Case
In Bhubaneswar, officials from Odisha Vigilance on Thursday arrested Pradip Kumar Mohanty, a retired headmaster, along with his wife, Gitarani Mohanty, in connection with an alleged ₹5.56 crore government fund embezzlement case.
According to investigators, the couple had been absconding and frequently changing locations across Odisha and neighboring West Bengal before being apprehended. Acting on intelligence that they were hiding in Kolkata, vigilance teams conducted coordinated searches and ultimately tracked them to a hotel in Charampa in Bhadrak district, where they were arrested early Thursday morning. Authorities said the arrests followed an extended search operation involving multiple locations.
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Allegations of Manipulated Pension Records
Investigators allege that Pradip Mohanty, during his re-engagement at the office of the Block Education Officer (BEO) in Korei, Jajpur district, orchestrated a scheme to siphon off public funds by falsifying official records.
By marking retired teachers as still “active” in service within official systems, authorities said, he was able to generate and process monthly pension bills in their names. These payments, according to officials, were then diverted through a series of transactions over an extended period.
The alleged fraud spanned nearly six years, from November 2018 to September 2024, indicating a sustained manipulation of administrative processes.
Network of Accounts and Family Involvement
According to Odisha Vigilance sources, the funds were routed into multiple bank accounts held by Mohanty, his wife, and other family members, including his son, Matruprasad Mohanty.
Matruprasad Mohanty, identified as the branch head of a small finance bank in Bhadrak, was arrested earlier in the investigation. Officials said he, along with others, is currently being interrogated as part of the expanding probe.
Authorities also indicated that the scheme involved unauthorized access to the Human Resource Management System (HRMS), through which the accused allegedly targeted the identification details of at least 13 retired teachers who were pension beneficiaries.
Investigation Triggered by Department Referral
The case came to light after irregularities were detected and referred by the Education Department to Odisha Vigilance. Following the referral, a formal investigation was initiated, leading to the arrests and recovery efforts.
Officials said the misappropriated funds, amounting to ₹5,56,11,495, were traced through financial transactions linked to the accused and their associates. Investigators described the case as involving a “sophisticated collaboration” between the retired official and his son, facilitated by access to administrative and banking systems.
The investigation remains ongoing as authorities continue to examine financial trails, digital records, and the possible involvement of additional individuals connected to the alleged embezzlement scheme.
