Bhubaneswar: Two employees of the Excise Department, including a retired official, have been arrested by Sambalpur police in connection with an alleged embezzlement of government funds worth over ₹3.67 crore between 2022 and 2025, officials said on Friday.
Superintendent of Police, Sambalpur, Mukesh Kumar Bhamoo, said the accused have been identified as Sandeep Kumar Pattnaik, a suspended junior assistant, and Sarat Chandra Behera, a retired Excise Assistant Sub-Inspector (ASI).
Police sources said another accused in the case, retired Excise ASI Achyuta Dehury, remains absconding.
The fraud came to light 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.
Based on 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 launched a detailed investigation.
During the probe, investigators found that multiple unauthorised sanction orders had been generated through the IFMS portal in favour of Dehury, leading to excess withdrawal of pension and salary arrears between November 2022 and October 2025. Official records, including bill registers and cash books, were also allegedly manipulated and poorly maintained.
“Bank account analysis revealed suspicious high-value transactions, including large cash withdrawals and transfers to associates, indicating misappropriation and diversion of government funds,” police said.
Pattnaik, who was handling establishment-related matters, was arrested on March 28 for his alleged role in siphoning off funds. Behera was subsequently arrested on March 31.
The accused allegedly abused their official positions to manipulate financial records, generate fraudulent sanctions, and divert government funds, causing significant loss to the state exchequer.
Police have so far seized ₹23.46 lakh from Pattnaik, while ₹44 lakh from the defrauded amount has been frozen in various bank accounts.
Further investigation is underway to trace the absconding accused and uncover the full extent of the fraud.
