Bhubaneswar: The Economic Offences Wing (EOW) of the Odisha Crime Branch arrested Sushant Samal, an associate of Biju Yuva Janata Dal's state vice-president Soumya Shankar Chakra, popularly known as Raja Chakra, in connection with a multi-crore scam connected to the Gandhamardhan Loading Agency & Transporting Co-operative Society Ltd.

Samal allegedly helped Chakra in hiding large amounts of money at various locations. He was also allegedly involved in money laundering activities.

The agency has taken Chakra on a 3-day remand for questioning. He was arrested on March 13. On the basis of a complaint filed by a villager residing near the Gandhamardan mines in Keonjhar district, the EOW had registered a case under sections 406, 409, 420, 467, 468, 471, and 120-B of the IPC on February 7 and started an investigation into the matter.

The complainant alleged large-scale irregularities in the functioning of the Gandhamardan Loading Agency and misappropriation of cooperative funds meant for villagers affected by mining activities. The investigation revealed that the loading agency had earned around ₹185 crores from 2017-18 to March 2024, the EOW said.

It was found that President Manas Barik and Secretary Utkal Das, along with some local influential persons, defrauded huge sums. ₹34 crores were taken under the guise of peripheral development, but no such work was done. ₹9.1 crores were diverted to Maa Kali Petrol Pump, which did not supply fuel to GML but instead supplied fuel to vehicles belonging to Soumya Shankar Chakra, with payments made by GML, the agency said.

₹33 crores were distributed to local villagers, ensuring their support for Chakra. Around ₹74 crores were shown as loading charges and labour payments, but the muster roll and vouchers showed major discrepancies. The period is set for audit, as the society has not conducted audits since 2012-13, said the EOW.

Though Chakra was not officially associated with the society, he controlled its operations through his associates Sadashiv Samal, Sudhansu Shekhar Naik, and Samir Jena. Chakra established Shankar Mineral, Shankar Transporting, Shankar Roadways, and Shankar Project to run his business empire, the agency added.

As many as 42 vehicles belonging to Chakra and two screening plants have been seized by the EOW. Based on financial investigation, several bank accounts have been frozen, with the seizure of ₹25 lakhs from banks.

Further investigations are underway to ascertain the possible involvement of others in the scam.