BHUBANESWAR/JHARSUGUDA : The Economic Offences Wing (EOW) of Crime Branch on Tuesday arrested former Belpahar municipality executive officer (EO) Madhusmita Singh in connection with the alleged misappropriation of over Rs 4 crore during 2024-25 financial year.
Singh, who was serving as the tehsildar of Jamda in Mayurbhanj district before being placed under suspension, was taken into custody from her house under Khunta police limits in Mayurbhanj. Singh was suspended by the Revenue department on August 30.
EOW had registered a case on August 23 after taking over the investigation of the massive fraud from Belpahar police station. Investigation revealed the siphoning of government funds had taken place when Singh was posted as the EO of Belpahar municipality from October 4, 2023 to May 31, 2025.
EOW officials said Singh reportedly swindled the money with the help of Belpahar municipality accountant Bibhuti Sahoo, sanitation expert Soumya Biswa Ranjan Mahali and a few other persons. While Belpahar police has arrested Sahoo in connection with the case, Mahali is absconding.
EOW said Belpahar municipality was provided Rs 2 crore funds under Unnati Scheme for financial year 2024-2025. The amount was meant to be spent on construction/renovation of roads and drains. However, the money was utilised towards beautification and decorative works. Of the total amount, Rs 1.56 crore was spent without any mandate, authority or approval.
The said expenditures were even not supported by any proper documentation. Singh claimed that the municipality purchased 200 decorative lights for Rs 78,000 each. However, during verification it was ascertained that only 171 lights were installed and about Rs 22.62 lakh had been misappropriated.
Similarly, the municipality officials misappropriated Rs 83.87 lakh received under 15th finance commission to purchase 41 varieties of bulk chemicals weighing thousands of kilograms. No detailed supporting documentation such as purchase orders, stock entry registers, delivery challans or consumption records were available with the officials.
They also misutilised an additional Rs 18.28 lakh towards purchase of chemicals without submitting supporting vouchers, bills or records. Interestingly, only 14.96 kg chemicals were found in the store during the stock verification.
The EOW has also unearthed irregularities during the tenure of current EO Gourav Chandra Pradhan who allegedly authorised payments exceeding Rs 2 crore without verifying the municipality’s cashbook. He has been summoned for questioning, and investigators are now examining the records maintained during his tenure.
The EOW hinted at more arrests and departmental actions in the coming weeks. “Further investigation into the case is underway,” said an EOW official.