Bhubaneswar: Following verification and enquiry into allegations of misappropriation of public funds, Odisha Vigilance has registered a case in connection with the embezzlement of government funds amounting to ₹9,24,10,193 at the Office of the Superintending Engineer (SE), Roads & Buildings (R&B) Division-I, Bhubaneswar.

Vigilance sources said the probe revealed between FY 2022–23 and FY 2025–26, accused Banalata Mohanty, Section Officer, and Bibhudutta Nayak, Junior Assistant attached to the Establishment Section of the O/o the SE, R&B Division-I, Bhubaneswar fraudulently generated fake sanction orders and bills. The duo carried out the conspiracy in association with unknown associates. 

The bills were pertaining to provisional gratuity, unutilised leave salary in the names of retired employees, and ingenuine claims against the office contingency fund. The fraudulent bills were illegally and unauthorisedly processed in the Integrated Financial Management System (IFMS) to siphon off the government money.

While genuine bills carried authentic beneficiary bank details, the forged bills contained substituted bank account numbers belonging to relatives, acquaintances, etc. 

Vigilance sources added a total of 77 bank accounts belonging to 48 individuals, including the son, the driver, and associates of Banalata Mohanty, brothers and relatives of Bibhudutta Nayak were used to receive the misappropriated funds. The account holders subsequently transferred some money back to the primary accused or withdrew cash to hand over to them. 

After detection of the embezzlement and initiation of enquiry into the matter, the administrative authority has recovered ₹3.96 crores of misappropriated amount.

In this connection, Bhubaneswar Vigilance PS Case No 21 dated 25.09.2026 has been registered against Mohanty, Nayak and others under Prevention of Corruption Act,1988 and Sections 316(5)/318(4)/336(3)/338/340(2)/61(2) of the BNS, 2023.

Further investigation is underway.