Odisha EOW arrests businessman in multi-crore DMFT fund fraud case

Bhubaneswar, March 19 (IANS) The Economic Offences Wing (EOW) of the Odisha Police has arrested a businessman for his alleged involvement in a multi-crore fraud case related to the embezzlement of District Mineral Foundation Trust (DMFT) funds in Mayurbhanj district, a senior EOW official said on Thursday.

The accused, Brajesh Mishra, proprietor of Mishra Enterprises and Mahakal Construction, was apprehended on Tuesday (March 17) from Chhattisgarh in connection with EOW Police Station Case No.

5/24.

Following his arrest, the businessman was produced before a local court in Chhattisgarh and later brought to Bhubaneswar on transit remand. Mishra is scheduled to be produced before the designated OPID court in Balasore on March 20.

The EOW took over the case registered at the Bhanjapur Police Station in Mayurbhanj district on April 19, 2024, based on a complaint filed by Sujata Kanungo, Chief Manager of Bank of India, Baripada.

The complainant alleged fraudulent withdrawal of Rs 9.56 crore from the DMFT account of the Zilla Parishad, Mayurbhanj, using four forged cheques on April 10 and 18, 2024.

Investigations revealed that the fraudsters used cloned cheques to siphon off funds into accounts of PT Constructions & Supplier and S.K. Enterprises held in different banks. The siphoned money was subsequently diverted to multiple accounts through layered transactions to conceal the trail.

“During investigation, it was found that the savings account of the Zilla Parishad, Mayurbhanj, is maintained with Bank of India, Baripada branch in the name of District Mineral Foundation Trust.

The fraudsters, by producing forged or cloned cheques, managed to transfer Rs 9,56,76,600 in total into two different accounts in the name of PT Constructions & Supplier, maintained with Bank of Maharashtra, and S.K. Enterprises, maintained with Punjab & Sindh Bank,” EOW sources said.

So far, EOW sleuths have managed to block Rs 5.04 crore, while Rs 13.56 lakh in 33 accounts has been frozen. Probe findings indicate that Rs 98.30 lakh and Rs 49.19 lakh were transferred to accounts linked to Mishra’s firms.

Of this, Rs 14.19 lakh was routed to his personal account, with the remaining funds diverted further.

During the investigation, the defrauded amounts were found to have been further diverted to several other accounts from those of PT Constructions & Supplier and S.K. Enterprises.

EOW officials said Mishra is part of a well-organised interstate fraud network operating across Chhattisgarh, Madhya Pradesh, Jharkhand, West Bengal, and Odisha for the past four years.

The gang allegedly employed cheque cloning, multi-layered transactions, and multiple bank accounts to execute the scam.

Earlier, police arrested three accused — Pomesh Tembhare, Ghanshyam Ahuja, and Ajmir Mondal — in connection with the case.

--IANS

gyan/pgh