Bhubaneswar: The Economic Offences Wing (EOW) of Odisha has arrested two individuals linked to an iron ore loading agency for their alleged involvement in a fraud and misappropriation case amounting to over Rs 35 crore.
The accused, identified as Manas Ranjan Barik, former President, and Utkal Das, Secretary of the Gandhamardhan Loading Agency & Transporting Cooperative Society Ltd, were apprehended from Suakati in Keonjhar district. They are set to be presented before the designated court under the OPID Act in Balasore.
The case was initiated based on a written complaint by Biswanath Roul, who accused the office bearers of the Gandhamardhan Loading Agency & Transporting Cooperative Society Ltd of embezzling Rs 40 to 50 crore. The agency, which handles iron ore loading from mines operated by the Odisha Mining Corporation (OMC), allegedly used forged documents to carry out the fraud.
Established in 2006, the Gandhamardhan Loading Agency was intended to support the economic development of residents in mining-affected areas by utilizing profits from its operations. However, investigations revealed that from 2017-18 to 2023-24, a small group of influential outsiders, including the office bearers, monopolized the society’s operations. They allegedly conspired to fabricate documents related to labor payments, periphery development, infrastructure expenses, member compensations, and EPF deductions, siphoning off crores of rupees in the process.
The cooperative society reportedly charged an exorbitant rate of Rs 60 per ton for iron ore loading, significantly higher than other agencies, leading to substantial profits. These profits were allegedly misused, with payments shown to various individuals and agencies without proper documentation such as tenders, work orders, or vouchers. Notably, these transactions were not recorded in essential registers like cash books, ledgers, or attendance records.
Investigators found that most payments, amounting to crores, were made in cash or through self-cheques without proper acknowledgments or descriptions of the work performed. The office bearers allegedly diverted funds in violation of the society’s bylaws, with no audits conducted since 2012 except for a special audit in 2022 prompted by local complaints. Despite uncovering serious irregularities, no action was taken against the accused at the time.
The arrested President and Secretary were found to have signed numerous self-cheques for crores of rupees without proper justification or documentation. Additionally, labor payments lacked details such as worker names, signatures, or proportionate EPF deductions, indicating large-scale misappropriation.
The EOW revealed that Manas and Utkal, in collusion with other office bearers and influential outsiders, orchestrated the financial irregularities, embezzling over Rs 35 crore. The investigation is ongoing, and the amount could increase as more evidence is uncovered. Authorities have seized incriminating documents, including registers, ledgers, vouchers, resolution books, and labor payment sheets.
The case highlights significant lapses in governance and accountability within the cooperative society, raising concerns about the misuse of funds meant for community development. Further investigations are expected to uncover more details about the extent of the fraud and the involvement of additional individuals.
