Two persons have been arrested for their alleged roles in the embezzlement of Rs 3.67 crore in government funds from an excise office in Odisha’s Sambalpur, an officer said on Friday.
The arrests were made in connection with a case registered on March 9, initiated by a complaint from the Deputy Commissioner of Excise after audit authorities uncovered significant financial discrepancies, according to Sambalpur SP Mukesh Kumar Bhamoo.
Police have taken into custody a suspended junior assistant and a retired department employee in connection with the fraud, the SP noted.
A preliminary probe found that unauthorized sanction orders were created through the Integrated Financial Management System (IFMS) portal under a retired ASI’s name, resulting in the excess withdrawal of pension and salary arrears between November 2022 and October 2025, he said.
Bhamoo claimed that the suspects manipulated official documentation, including bill registers and cash books, to facilitate the transfer of government funds directly into their personal bank accounts.
The SP stated that the accused exploited their official positions to forge records and generate fraudulent sanctions, siphoning off public funds for personal gain while causing a substantial loss to the state treasury.
The police have seized Rs 23.46 lakh in cash and frozen Rs 44 lakh deposited in different banks by the accused persons, he said.
Further investigation is going on to nab other accused persons involved in the case, he added.
