Corruption / Odisha Vigilance Cracks ₹55 Lakh Tank Renovation Fraud, Three Arrested

Bhubaneswar, Aug 6: In a decisive move against corruption, Odisha Vigilance has arrested three individuals — including two government engineers and a private contractor — in connection with financial irregularities in the Reclamation and Renovation of Pattanaik Tank project at Paralakhemundi, Gajapati district.

The investigation revealed a deliberate misappropriation of government funds amounting to ₹55,69,033 through falsified measurement book (MB) entries and sub-standard execution of work.

Investigation Findings

Between 2019 and 2022, the Reclamation and Renovation of Pattanaik Tank project at Paralakhemundi saw major financial irregularities. A total of ₹1,22,40,700 was disbursed across three RA bills after statutory deductions.

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Ex-Junior Engineer D. Yudhistir allegedly inflated and fabricated measurement entries in official records, while Municipal Engineer Sanjeev Champati knowingly validated these false entries during check measurements.

Based on these endorsements, contractor Surendra Panigrahi received the entire payment.

However, an independent technical assessment later confirmed sub-standard execution, resulting in a direct government loss of ₹55.69 lakh to the state exchequer.

Following the findings, Brahmapur Vigilance P.S. Case No. 07/2026 has been registered under multiple sections of the Prevention of Corruption Act, 2018, and the Indian Penal Code, including criminal conspiracy, cheating, forgery, and falsification of accounts.

All three accused — Yudhistir, Champati, and Panigrahy — were taken into custody and will be produced before the court on Thursday. Vigilance officials stated that the investigation is ongoing and further scrutiny of records and financial transactions is underway.

This action underscores Odisha Vigilance’s commitment to curbing corruption and protecting public funds. The case highlights how collusion between officials and contractors can lead to massive losses for the state, while depriving citizens of quality infrastructure.