Bhubaneswar: Odisha Vigilance sleuths on Thursday arrested three persons, including two government engineering officials and a private contractor, in connection with alleged financial irregularities to the tune of Rs 55.69 lakh in the ‘Reclamation and Renovation of Pattanaik Tank’ project at Paralakhemundi in Gajapati district.
The accused have been identified as Ex-Junior Engineer D Yudhistir, Municipal Engineer Sanjeev Champati, and contractor Surendra Panigrahi.
According to Vigilance, an investigation found systematic misappropriation of government funds between 2019 and 2022. A total of Rs 1,22,40,700 was disbursed to the contractor across three Running Account bills after statutory tax deductions.
Vigilance alleged that Yudhistir deliberately made inflated and false entries in the official Measurement Books for work that was either not executed or was sub-standard. Champati, during check measurement, knowingly endorsed these false measurements as ‘correct’. Based on these fraudulent endorsements, the full amount was paid to contractor Panigrahi.
An independent technical assessment by Odisha Vigilance confirmed sub-standard and less execution of work to the extent of Rs 55,69,033, causing direct loss to the state exchequer.
A case has been registered at Brahmapur Vigilance Police Station as Case No. 07/2026 under sections 13(2) read with 13(1)(a) of the PC Amendment Act, 2018 and sections 120-B, 409, 420, 468, 471, and 477-A of the IPC. All three accused will be produced in court on Tuesday.
Further investigation is underway, Vigilance said.
