Retired Odisha Teacher, Wife and Banker Son Arrested for Rs 5.56 Crore Pension Fund Scam

A retired government teacher and his family members have been arrested in Odisha for allegedly orchestrating a pension fraud worth ₹5.56 crore, police officials said. The main accused, Pradip Kumar Mohanty, was taken into custody along with his wife Gitarani after evading authorities for nearly two months. Investigators allege that the family manipulated official pension records to siphon large amounts of government funds into their personal bank accounts.

According to officials, Mohanty continued to work at the Block Education Office in Korei, Jajpur district, even after his retirement in 2019 through a re-engagement arrangement. Authorities suspect that he exploited his familiarity with administrative systems and procedures to tamper with pension data. The fraud came to light during a Vigilance department probe, which detected irregularities in fund disbursement and account records.

The couple was apprehended from a hotel in the Charampa area of Bhadrak district early on Thursday morning. Police said they had been absconding since the case surfaced, prompting an extensive search operation. Their son, Matruprasad Mohanty, who works as a branch head at a private bank in Bhadrak, had been arrested a day earlier for his alleged involvement in facilitating the transactions.

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Investigators believe the trio worked in coordination to divert funds by altering pension records and routing the money through multiple bank accounts. The role of the son, a banking professional, is suspected to have been crucial in managing the movement and concealment of funds. Authorities are examining financial trails to determine how the money was distributed and whether additional accounts were used.

In a related development, a clerk has also been arrested by the Vigilance department for allegedly assisting in the execution of the fraud. Officials are probing whether there was a larger network involved or if systemic loopholes within the pension disbursement system were exploited. The case has raised concerns about internal checks and oversight in government financial processes.

Police said further investigation is ongoing to recover the misappropriated funds and identify any additional suspects. The accused are expected to be produced before a court, and more charges could be filed based on the findings. The incident highlights the need for stronger monitoring mechanisms and stricter safeguards to prevent misuse of public funds.

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