Odisha EOW arrests 2 linked to iron ore loading agency for fund misappropriation
Odisha EOW officials said the agency, which handles iron ore loading from mines operated by the Odisha Mining Corporation, allegedly used forged documents for misappropriating funds
Bhubaneswar: The Economic Offences Wing (EOW) of the Odisha police have arrested two persons linked to an iron ore loading agency in connection with a fraud and misappropriation case amounting to over ₹35 crore.
The accused-- the Gandhamardhan Loading Agency & Transporting Cooperative Society Ltd’s former president Manas Ranjan Barik and its Utkal Das-- were arrested from Suakati in Keonjhar district and later presented before the designated court under the Odisha Protection of Interests of Depositors (OPID) Act in Balasore town.
EOW officials said the Gandhamardhan Loading Agency, which handles iron ore loading from mines operated by the Odisha Mining Corporation (OMC), allegedly used forged documents to carry out the fraud. Between 2017-18 and 2023-24, a small group of people, including the office bearers allegedly conspired to fabricate documents related to labour payments, periphery development, infrastructure expenses, member compensations, and Employees’ Provident Fund (EPF) deductions, siphoning off crores of rupees in the process.
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 ₹40 to 50 crore.
The cooperative society reportedly charged an exorbitant rate of ₹60 per ton for iron ore loading, 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.
EOW officials 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 by-laws, with no audits conducted since 2012 except for a special audit in 2022 prompted by local complaints. Despite allegations of serious irregularities, no action was taken against the accused at the time.
Officials said Manas and Utkal, in collusion with other officebearers and outsiders, orchestrated the financial irregularities signing 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 embezzled amount could go up as EOW officials are examining the documents, including registers, ledgers, vouchers, resolution books, and labor payment sheets.