BHUBANESWAR: A panchayat executive officer (PEO) in Ganjam district was arrested for allegedly embezzling Rs 43 lakh of government funds and investing the money on betting and gaming apps.
Khetramohan Nayak, posted as PEO of Radhadeipur panchayat under Sanakhemundi block, was taken into custody by Vigilance officials on Friday. He has been accused of embezzling funds to the tune of over Rs 43 lakh from the CFC, SFC, PDS and OAP accounts of the panchayat, by reportedly forging the signature of the sarpanch through cheques from accounts in Axis Bank and Canara Bank of Digapahandi Branch.
According to Vigilance sources, Khetramohan, who was posted as the PEO in July 2024, allegedly used the government funds for online betting and gaming.
The PEO reportedly transferred the government funds into his own account and then put the money in the apps. He told the investigators that he had planned to deposit the swindled funds in the panchayat’s bank accounts after making profits through the app. He, however, sustained losses in the last few months.
The issue came to light when Radhadeipur sarpanch Rakesh Patra lodged a complaint with Sanakhemundi BDO Jitendra Nayak against Khetramohan on March 13, alleging the PEO had withdrawn a large sum of money deposited in four bank accounts of the panchayat between October 2024 and March, without his knowledge.
The BDO issued a show cause notice to the PEO and gave him a week to reply. Nayak also formed a team to look into the matter, which submitted its report following which he forwarded it to Ganjam collector Dibyajyoti Parida. Meanwhile, as the PEO didn’t reply to the show cause notice, the sarpanch lodged a complaint with Patapur police station.
Basing on it, inspector in charge of Patapur police station Diptiranjan Behera arrested the PEO from his residence in Berhampur. The Vigilance team examined several files and questioned staff members. They also seized relevant documents from the PEO’s office.
Nayak was later transferred to the Berhampur Vigilance office for further interrogation. Searches are still ongoing at both his office and residence.