Bhubaneswar. The Odisha Vigilance has intensified its investigation into the alleged ₹9.24 crore financial scam in the Road and Building (R&B) Division-1 of the Works Department in Bhubaneswar. Four more employees were arrested on Sunday, taking the total number of people arrested in the case to six. The latest arrests include office peons Deepak Kumar Routray and Laxman Biswal, along with two outsourced data entry operators, Rajib Lochan Senapati and Soumya Ranjan Mohapatra.
According to the investigating agency, the four employees arrested on Sunday worked under previously arrested Section Officer Banalata Mohanty and Junior Assistant Bibudatta Nayak. They are alleged to have played a role in withdrawing government funds, transferring the money into different bank accounts and helping conceal the transactions. Investigators are now examining the banking trail to determine how the alleged embezzled funds were routed and how the money was subsequently used or distributed.
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The preliminary investigation indicates that the alleged diversion of government funds took place between the financial years 2022-23 and 2025-26. Investigators have alleged that fake bills were prepared in the names of retired employees. Fake documents and work orders were also allegedly generated in the name of office contingency expenses. These bills were then processed for payment through the Integrated Financial Management System (IFMS), according to the investigation.
The agency has alleged that instead of being transferred to legitimate beneficiaries, the payments were routed into multiple bank accounts. The preliminary probe has identified 77 bank accounts linked to 48 people. These reportedly include family members, relatives and close associates of the accused. Vigilance officials are examining transactions in these accounts to establish where the government funds were ultimately transferred and who benefited from the alleged diversion.
According to the investigation, substantial amounts were also credited to the personal bank accounts of the four employees arrested on Sunday. Deepak Kumar Routray allegedly received ₹32,47,800, while ₹16,21,484 was credited to Laxman Biswal’s account. Rajib Lochan Senapati allegedly received ₹28,28,817, and ₹35,69,098 was credited to Soumya Ranjan Mohapatra’s account. Investigators are examining the source of these amounts and their subsequent movement.
The probe has also indicated that some account holders allegedly withdrew the money in cash or retained a portion as commission before returning the remaining amount to the alleged main accused. The complete financial trail is still being examined, and the exact role of each person will depend on the evidence collected during the investigation.
Following the detection of the alleged scam, authorities initiated action to freeze bank accounts and recover the diverted funds. Around ₹3.96 crore has so far been frozen and recovered, according to the information available from the investigation. Vigilance officials are continuing to trace the remaining amount while examining the alleged fake bills, work orders, payment records and related financial documents.
All six accused have been produced before the court. The anti-corruption agency is continuing its investigation under the Prevention of Corruption Act and relevant provisions of the Bharatiya Nyaya Sanhita (BNS). The probe now covers bank accounts, digital financial records, entries made through the IFMS and documents allegedly used to process the payments.
Investigators are also examining how the alleged diversion of such a large amount of government money continued over several financial years and whether other individuals were involved. The probe is expected to establish the chain of transactions, the beneficiaries of the alleged payments and the role of officials and other account holders. Further legal action will depend on the evidence and findings that emerge as the investigation progresses.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
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