Bhubaneswar, Jul 3: Odisha Vigilance on Friday arrested two former Panchayat Executive Officers (PEOs) in Puri district for allegedly misappropriating over Rs30 lakh meant for vulnerable beneficiaries under the Madhu Babu Pension Yojana (MBPY), officials said.

​The arrested officials have been identified as Sulamani Jani, former PEO of Gadamrugsira and Jamarsuan Gram Panchayats under Sadar Block, Puri (currently attached to Sadar Block Office) and ​Tuna Pradhan, Former PEO of Sahupada Gram Panchayat under Kanas Block, Puri (currently attached to Gop Block Office).

Investigators revealed that between 2022 and 2025, the duo exploited their administrative positions to divert undisbursed pension funds. Jani allegedly misappropriated Rs15,74,820, while Pradhan siphoned off Rs15,03,800, collectively amounting to Rs30,78,620. The funds were earmarked for elderly, disabled, and destitute individuals under MBPY.

According to Vigilance officials, the accused retained the undisbursed amounts and diverted them for personal gain, betraying the trust of beneficiaries dependent on the scheme.

Both accused officials are being forwarded to the Court of Special Judge, Vigilance, Bhubaneswar.

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Two separate cases have been registered at Bhubaneswar Vigilance Police Station (Case Nos. 13 and 14/2026) under Section 13(2) read with 13(1)(a) of the Prevention of Corruption (Amendment) Act, 2018, and Section 316(5) of the Bharatiya Nyaya Sanhita (BNS).

Officials said incriminating documents and evidence were collected during the probe, which exposed systematic financial fraud. Vigilance authorities stressed that strict action is being taken to ensure accountability and restore confidence in welfare schemes designed for vulnerable sections of society.