Bhubaneswar, 03 April (H.S.): In a major financial fraud case, Sambalpur police have arrested two Excise Department personnel, including a retired official, for allegedly embezzling government funds worth over ₹3.67 crore between 2022 and 2025, officials said on Friday.

Superintendent of Police, Sambalpur, Mukesh Kumar Bhamoo identified the accused as Sandeep Kumar Pattnaik, a suspended junior assistant, and Sarat Chandra Behera, a retired Excise Assistant Sub-Inspector (ASI). Another accused, retired ASI Achyuta Dehury, is currently absconding.

The fraud was uncovered during an audit of the Excise Department’s financial records conducted by authorities, including the Principal Accountant General (A&E), Odisha, which flagged serious irregularities.

Following a written complaint filed by Ashok Kumar Seth, I/C Deputy Commissioner of Excise (Northern Division), Sambalpur, Ainthapali police registered a case (No. 73/26) on March 9 and initiated a detailed investigation.

Preliminary findings revealed that multiple unauthorised sanction orders were generated through the IFMS portal in favour of the absconding accused, leading to excess withdrawal of pension and salary arrears between November 2022 and October 2025. Investigators also found that official records, including bill registers and cash books, had been manipulated and poorly maintained.

Police stated that bank account analysis exposed suspicious high-value transactions, including large cash withdrawals and transfers to associates, indicating misappropriation and diversion of government funds.

Pattnaik, who handled establishment-related matters, was arrested on March 28 for his alleged involvement in siphoning off funds, while Behera was taken into custody on March 31.

So far, police have seized ₹23.46 lakh from Pattnaik, and an additional ₹44 lakh has been frozen in various bank accounts linked to the fraud.

Officials said the accused abused their positions to manipulate financial records, generate fraudulent sanctions, and divert public funds, causing significant losses to the state exchequer. Further investigation is underway to trace the absconding accused and determine the full scope of the fraud.

---------------

Hindusthan Samachar / Monalisa Panda