Bhubaneswar: The Odisha Vigilance on Friday arrested two former Panchayat Executive Officers (PEOs) from Puri district for allegedly embezzling more than Rs 30.78 lakh meant for beneficiaries of the Madhu Babu Pension Yojana (MBPY).

The accused have been identified as Sulamani Jani, former PEO of Gadamrugsira and Jamarsuan Gram Panchayats under Sadar Block, currently attached to the Sadar Block Office, and Tuna Pradhan, former PEO of Sahupada Gram Panchayat under Kanas Block, who is presently attached to the Gop Block Office.

According to Odisha Vigilance, the two officials are involved in separate cases of alleged financial fraud in which government funds earmarked for elderly, disabled and destitute beneficiaries under the pension scheme were misappropriated.

The investigation revealed that the accused allegedly exploited their official positions between 2022 and 2025 to retain pension amounts that remained undisbursed and divert them for personal gain.

Vigilance officials said Sulamani Jani is accused of misappropriating Rs 15,74,820, while Tuna Pradhan allegedly embezzled Rs 15,03,800, taking the total alleged misappropriation to Rs 30,78,620.

Following their arrest, both officials are being produced before the Court of the Special Judge, Vigilance, Bhubaneswar.

In connection with the case, Odisha Vigilance has registered Bhubaneswar Vigilance Police Station Case Nos. 13 and 14 of 2026 under sections 13(2) r/w 13(1)(a) Prevention of Corruption (Amendment) Act, 2018 and 316(5) Bharatiya Nyaya Sanhita (BNS).

The Vigilance Department said further investigation is underway to ascertain whether additional individuals were involved and to trace the complete extent of the alleged financial irregularities.