BHUBANESWAR/BERHAMPUR: The Economic Offences Wing (EOW) of the Crime Branch on Friday said it was investigating former Biju Janata Dal (BJD) MP N Bhaskar Rao for collecting funds running into crores of rupees from truck owners in Rayagada district towards payment of protection money to Left Wing Extremists (LWEs).
The EOW conducted raids at 11 locations in Odisha linked to three persons, including Rao and his son, for alleged misappropriation of about Rs 60 crore belonging to the Rayagada Truck Owners’ Association. All three accused have been office-bearers of the truck owners’ body since 2003.
According to the agency, the prime accused, in connivance with other office-bearers, had been collecting money from truck owners since 2005 under different heads, including payments to Naxals to ensure the safe movement of transport trucks when the district was affected by LWE activities.
The huge collections were made without proper accounting or issuance of receipts. It is further alleged that the misappropriated funds were diverted to various private business ventures, including logistics, trading, mining and real estate companies, it said.
On Friday, multiple teams of the agency conducted simultaneous searches at properties belonging to Rao, his son Krishna Chaitanya and their associate Manmadha Rao in Rayagada. Besides the truck owners’ association office in Rayagada, 10 private companies in Bhubaneswar and one in Rayagada also came under the scanner.
Searches were carried out at Sri Aditya Industries Private Limited in the capital’s Forest Park area, Arun Power Project Limited in Baramunda, Ari Aditya Logistics Private Limited and Sri Aditya Trading & Marketing Private Limited in Bhimpur, Shree Balaji Real Estates & Agri Developers and Sri Aditya Real Estate & Agri Developers in Mancheswar Industrial Estate.
Searches were also carried out at the office of Aditya HP Enterprises Gas Agency in Rayagada. Of the seven firms, four belong to the Rao family and the remaining three to their relatives, official sources said.
The EOW had registered a case in this connection in September after receiving a complaint from the truck owners’ association president alleging large-scale financial irregularities.
The investigation revealed that the association was formed in 1983 and the three accused had been serving as its office-bearers since 2003.
During the searches, EOW officials seized incriminating documents, including the independent auditor’s report of M/s Arun Power Projects Limited and a letter from the Energy department’s under-secretary regarding the cancellation of the allotment of the 10 MW Hatipathar small hydroelectric project, as well as a no-objection certificate issued by the Registrar of Cooperative Societies in favour of the private firm.
The agency’s officials also seized lease agreements, a registration certificate, a letter regarding the allotment of a tax deduction and collection account number, an LPG distributorship agreement related to Sri Aditya Enterprises and records of rights in the name of Nekkanti.
The audit report and acknowledgement of income tax returns in favour of Sri Aditya Enterprises and its proprietor, Krishna Chaitanya Nekkanti, bank documents and Rs 15 lakh in cash were also seized.
Rao served as a Rajya Sabha MP from 2016 to 2022 and resigned from the BJD in 2025.
