Bhubaneswar, March 19: Odisha Vigilance on Thursday arrested the prime accused and his wife in a Rs 5.56 crore government fund embezzlement case.

"Main accused in Rs 5.56 Crore misappropriation, Pradip Kr Mohanty, Retd Headmaster, re-engaged at BEO Office post retirement, along with his wife Gitarani Mohanty, who were absconding and on the run, changing locations in Odisha and West Bengal, were nabbed by a team of Odisha Vigilance early morning today," a senior vigilance official informed on Thursday.

On suspicion of the accused couple hiding in Kolkata, a team of Odisha Vigilance rushed there and carried out raids at suspected hideouts. Anticipating possible police action, the duo left Kolkata on Wednesday night and went into hiding at a Hotel in Charampa of Bhadrak district in Odisha from where they were nabbed early morning on Thursday.

"They are currently being interrogated in the case. The misappropriated funds were transfered to the personal accounts of Pradip Mohanty, his wife, son Matruprasad Mohanty (arrested yesterday) and others. Investigation continuing further," said Odisha Vigilance sources.

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The accused Matruprasad Mohanty, was the Branch Head of Jana Small Finance Bank in Bhadrak. The fraud was carried out at the office of the Block Education Officer (BEO), Korei, in Jajpur district, resulting in a total loss of Rs 5,56,11,495.

“The investigation by Odisha Vigilance revealed a sophisticated collaboration between the accused Matruprasad and his father, Pradip Kumar Mohanty, a retired headmaster re-engaged at the BEO office,” said a senior Vigilance official.

The prime accused, Pradip Kumar, during his re-engagement at the BEO office, allegedly gained unauthorised access to the Human Resource Management System (HRMS) and targeted the IDs of 13 retired teachers who are pensioners.

By falsifying official records to show these retirees as still “active” in service, he generated and processed monthly pension bills in their names. Using this fraudulent method over an extended period, he siphoned off funds and routed the money through a series of transactions. The funds were ultimately diverted into bank accounts held by him and his family members across various branches of the State Bank of India, concealing the trail.

The fraud spanned nearly six years, from November 2018 to September 2024. Vigilance sources said that after the fraud came to light, the Education Department referred the matter to Odisha Vigilance. Subsequently, Odisha Vigilance initiated an investigation and arrested Matruprasad on Wednesday.

--IANS