In a huge crackdown on financial irregularities targeting government pension systems, the Odisha Vigilance detained Matruprasad Mohanty, the Branch Head of Jana Small Finance Bank in Bhadrak, on Wednesday for allegedly being involved in a massive Rs 5,56,11,495 embezzlement scam.
The fraud lasted over six years, from November 2018 to September 2024, and involved the diversion of monies intended for the Office of the Block Education Officer (BEO), Korei, in Jajpur district. The accused allegedly collaborated with his father, retired Headmaster Pradip Kumar Mohanty, who was rehired at the BEO office.

According to the Vigilance inquiry, Pradip Kumar Mohanty illegally gained access to the Human Resource Management System (HRMS) and targeted the identities of 13 retired teachers (pensioners). He produced and filed bogus monthly pension invoices in the names of these retirees by falsifying records to make them appear "active" in service.
The embezzled cash were subsequently laundered methodically through a series of transactions into bank accounts owned by Pradip Kumar Mohanty, his son Matruprasad Mohanty, and other family members at several State Bank of India (SBI) branches.
The Odisha Vigilance has filed a case against Matruprasad Mohanty under relevant parts of the Prevention of Corruption Act of 2018, as well as provisions of the Indian Penal Code (IPC).He was arrested today and is being brought before the court.