Odisha Police Arrest Two Excise Department Staff In Rs 3.67 Crore Fraud Case

(MENAFN- IANS) Bhubaneswar, April 3 (IANS) The Sambalpur police in Odisha have arrested two employees of the Excise Department, including a retired Excise Assistant Sub-Inspector (ASI), in connection with a case involving large-scale embezzlement of government funds worth over Rs 3.67 crore between 2022 and 2025, said Mukesh Kumar Bhamoo, Superintendent of Police, Sambalpur district, on Friday.

The accused persons arrested in the fraud case have been identified as Sandeep Kumar Pattnaik, a junior assistant (currently under suspension), and Sarat Chandra Behera, a retired Excise ASI.

Meanwhile, the police sources also revealed that another accused in the case, retired Excise ASI Achyuta Dehury, is still on the run. Serious financial irregularities came to light during an audit of the Excise Department’s financial records by authorities, including the Principal Accountant General (A&E), Odisha.

Subsequently, based on a written report submitted by Ashok Kumar Seth, I/C Deputy Commissioner of Excise (Northern Division), Sambalpur, the Ainthapali police registered a case (73/26) on March 9 and launched an investigation into the massive fraud.

The cops, during investigation, found that multiple unauthorised sanction orders were generated through the IFMS portal in favour of the retired Excise ASI Achyuta Dehury, leading to excess withdrawal of pension and salary arrears between November 2022 and October 2025. The official records, such as bill registers and cash books, were also found to be manipulated and not properly maintained.

“During investigation, bank account analysis showed suspicious high-value transactions, including large cash withdrawals and transfers to associates, indicating misappropriation and diversion of Government funds,” the police also added.

The accused Pattnaik, who was dealing with establishment matters, was arrested by the cops on March 28 for his involvement in the misappropriation of government funds to the tune of Rs 3.67 crore.

The police also managed to arrest another accused, Behera, Retd. ASI, on March 31. The accused persons, by abusing their official position, allegedly manipulated financial records, generated fraudulent sanctions, and siphoned off Government money, causing wrongful loss to the State exchequer and corresponding gain to themselves.

The police have so far seized Rs 23,46,500 from the possession of accused Pattnaik, while another Rs 44 lakh from the total defrauded amount transferred to various accounts has been frozen by the police.

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