EOW arrests BJD youth wing vice-president for fraud
Bhubaneswar: The economic offences wing (EOW) of the state crime branch arrested Soumya Sankar Chakra, a BJD youth wing vice-president and an influential leader in Keonjhar district, for his alleged involvement in a multi-crore mineral transportation fraud. After his anticipatory bail plea was rejected by Orissa high court on Wednesday, the EOW took him into custody on Thursday morning for questioning.
“Significant financial irregularities were discovered in Gandhamardan Loading Agency and Transporting Cooperative Society Limited. Although Chakra held no official position, he controlled the society through his associates Sadashiv Samal, Sudhansu Shekhar Naik and Samir Jena,” director general (crime branch) Vinaytosh Mishra said.
Investigations revealed the loading agency earned about Rs 185 crore between 2017-18 and March 2024. EOW sources said Rs 34 crore was withdrawn for peripheral development of Gandhamardan mines, but no work was executed. Additionally, Rs 9.1 crore was paid to a petrol pump that supplied fuel to Chakra’s vehicles rather than the cooperative society.
“The society distributed Rs 33 crore to local villagers supporting Chakra. Besides, Rs 74 crore was recorded as mineral loading charges and labour payment, with significant discrepancies in muster rolls and vouchers. The society has not undergone auditing since 2012-13,” Mishra added.
Senior BJD MLA and former minister Badri Narayan Patra endorsed the EOW action against Chakra. Patra alleged that Chakra had established an unlawful operation in mineral-rich Keonjhar with support from a former district collector and an SP prior to the 2024 assembly and Lok Sabha elections.
EOW sources said Chakra (also known as Raja) had set up multiple companies including Sankar Mineral, Sankar Transporting, Sankar Roadways and Sankar Project. Police have seized 42 vehicles and frozen bank accounts containing nearly Rs 25 lakh.
On Feb 8, the EOW arrested the society’s former president Manas Ranjan Barik and secretary Utkal Das in connection with the fraud. Some more suspects involved in the scam are likely to be arrested soon. Officials allegedly created false records for various expenses between 2017-18 and 2023-24.
“The society charged Rs 60 per tonne to load iron ore, notably higher than other agencies, generating significant profit. These funds were misappropriated through undocumented payments to various parties with proper tenders, work orders or vouchers. Chakra is believed to be the primary orchestrator,” an EOW officer said.
“Significant financial irregularities were discovered in Gandhamardan Loading Agency and Transporting Cooperative Society Limited. Although Chakra held no official position, he controlled the society through his associates Sadashiv Samal, Sudhansu Shekhar Naik and Samir Jena,” director general (crime branch) Vinaytosh Mishra said.
Investigations revealed the loading agency earned about Rs 185 crore between 2017-18 and March 2024. EOW sources said Rs 34 crore was withdrawn for peripheral development of Gandhamardan mines, but no work was executed. Additionally, Rs 9.1 crore was paid to a petrol pump that supplied fuel to Chakra’s vehicles rather than the cooperative society.
“The society distributed Rs 33 crore to local villagers supporting Chakra. Besides, Rs 74 crore was recorded as mineral loading charges and labour payment, with significant discrepancies in muster rolls and vouchers. The society has not undergone auditing since 2012-13,” Mishra added.
Senior BJD MLA and former minister Badri Narayan Patra endorsed the EOW action against Chakra. Patra alleged that Chakra had established an unlawful operation in mineral-rich Keonjhar with support from a former district collector and an SP prior to the 2024 assembly and Lok Sabha elections.
EOW sources said Chakra (also known as Raja) had set up multiple companies including Sankar Mineral, Sankar Transporting, Sankar Roadways and Sankar Project. Police have seized 42 vehicles and frozen bank accounts containing nearly Rs 25 lakh.
On Feb 8, the EOW arrested the society’s former president Manas Ranjan Barik and secretary Utkal Das in connection with the fraud. Some more suspects involved in the scam are likely to be arrested soon. Officials allegedly created false records for various expenses between 2017-18 and 2023-24.
“The society charged Rs 60 per tonne to load iron ore, notably higher than other agencies, generating significant profit. These funds were misappropriated through undocumented payments to various parties with proper tenders, work orders or vouchers. Chakra is believed to be the primary orchestrator,” an EOW officer said.
