Sambalpur (Odisha), April 3 Two individuals have been arrested for their alleged involvement in embezzling a government fund of ₹3.67 crore from an excise office in Sambalpur, Odisha, an official said on Friday.
The arrests were made in connection with a case registered on March 9, following a complaint lodged by the Deputy Commissioner of Excise, after audit authorities detected financial irregularities, Sambalpur SP Mukesh Kumar Bhamoo said.
The police have arrested a suspended junior assistant and a retired employee of the department, he said.
A preliminary investigation revealed that unauthorized sanction orders were generated through the Integrated Financial Management System (IFMS) portal in the name of a retired ASI, leading to excess withdrawal of pension and salary arrears between November 2022 and October 2025, he said.
The accused individuals have manipulated official records, including bill registers and cash books, and transferred the government funds to their bank accounts, Bhamoo claimed.
The SP said the accused misused their official positions to manipulate records, generate fraudulent sanctions, and siphon off government funds, causing significant loss to the state exchequer and wrongful gain for themselves.
The police have seized ₹23.46 lakh in cash and frozen ₹44 lakh deposited in different banks by the accused individuals, he said.
Further investigation is ongoing to apprehend other accused individuals involved in the case, he added.