The Odisha Police Economic Offences Wing (EOW) has arrested two more accused in connection with the alleged embezzlement of over ₹9.56 crore from District Mineral Foundation Trust (DMFT) funds in Mayurbhanj district. Investigators allege the accused were part of a larger interstate financial fraud network involved in siphoning government funds through forged cheques and layered banking transactions.
The arrested individuals have been identified as Surjit Roy and Sameer Srivastav, proprietors of Roy Associates and SS Traders respectively. According to the EOW, both were apprehended from Raipur in Chhattisgarh on May 21 and later brought to Bhubaneswar on transit remand for further questioning.
Fraud Allegedly Executed Using Forged Cheques
The case originated from a complaint filed by Sujata Kanungo, Chief Manager of Bank of India’s Baripada branch. Investigators alleged that fraudulent withdrawals amounting to ₹9,56,76,600 were made from the DMFT account of the Mayurbhanj Zilla Parishad using four cloned and forged cheques on April 10 and April 18, 2024.
According to investigators, the DMFT savings account was maintained at the Baripada branch of Bank of India. The EOW alleged that fraudsters used forged banking instruments to transfer the funds into accounts linked to PT Constructions and Supplier and S.K. Enterprises maintained in different banks.
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Officials stated that the money was later distributed across multiple bank accounts in different states through layered financial transactions designed to conceal the origin of the funds.
EOW Traces Interstate Fraud Network
During the investigation, officials allegedly found that ₹45.19 lakh and ₹39.19 lakh were transferred from PT Constructions and Supplier to the accounts of Roy Associates and SS Traders operated by the newly arrested accused.
Investigators suspect the accused were connected to a larger organised financial fraud network operating across Chhattisgarh, Madhya Pradesh, Jharkhand, West Bengal, and Odisha. According to EOW officials, the gang had allegedly been involved in similar financial scams for nearly four years.
An EOW official stated that the arrests have provided “important clues about the entire gang” and may help investigators uncover additional beneficiaries and operatives linked to the fraud network.
Crores Traced, Accounts Frozen During Probe
The EOW said investigators have so far blocked approximately ₹5.04 crore from the defrauded amount. Additionally, ₹13.56 lakh lying in 33 separate bank accounts has been frozen as part of the ongoing financial investigation.
Officials are now conducting forensic scrutiny of banking records, transaction trails, and digital evidence to identify the complete money flow and determine whether more shell entities or mule accounts were used in the alleged embezzlement operation.
Earlier, four other accused had already been arrested in the same case. Investigators believe further arrests are likely as the probe into the interstate fraud syndicate expands.
Focus on Misuse of Government Welfare Funds
The case has raised serious concerns regarding the misuse of District Mineral Foundation Trust funds, which are intended for welfare and development activities in mining-affected areas. Financial investigators are examining whether procedural lapses, insider involvement, or weaknesses in cheque verification systems enabled the fraudulent withdrawals.
Law enforcement agencies across India have increasingly reported cases involving forged cheques, shell entities, and layered bank transfers in public fund diversion scams. Authorities are expected to continue coordinating with banks and interstate agencies to trace remaining funds and identify all individuals linked to the operation.
