The Odisha Vigilance department on Tuesday produced Sudhansu Khora, the branch manager of the Koraput Central Co-operative (KCC) Bank in Malkangiri, before a court, a day after his arrest in connection with a major embezzlement case involving government funds. Khora is accused of misappropriating more than Rs 1 crore linked to crop loan transactions and repayments made by farmers through several Large Area Multi-Purpose Cooperative Societies (LAMPS) in the district.
Details of the Fraud
According to vigilance officials, the investigation revealed that between February 11 and March 24 this year, Khora allegedly diverted Rs 86.80 lakh collected as crop loan repayments from farmers under various LAMPS, including Malkangiri, Gangala, Pandripani, Markapalli, Poteru, and Challanguda. In addition, he is accused of misappropriating Rs 21.95 lakh disbursed as crop loans to around 90 farmers by allegedly using their signed cheques during early March. The total amount involved in the fraud thus stands at Rs 1.08 crore.
Modus Operandi
The irregularities first came to light during the March financial closing when discrepancies were detected in accounts linked to Malkangiri and Poteru LAMPS. Subsequent verification pointed to funds being routed outside official banking procedures, including instances of cash being handed over directly to the branch manager in exchange for alleged fake receipts. The vigilance department has registered two cases under the Prevention of Corruption (Amendment) Act, 2018, and the Bharatiya Nyaya Sanhita.
Arrest and Investigation
SP (Vigilance) Rabindra Kumar Panda confirmed, “The accused was apprehended following detection of embezzlement of government funds exceeding Rs 1.08 crore. Investigation is in progress, and further details will emerge as we examine the financial trail.” The arrest follows earlier administrative action against Khora, who had been placed under suspension on April 21 after a departmental inquiry flagged serious financial irregularities.
Efforts to Trace Funds
Officials said efforts are underway to trace the diverted funds and determine whether others were involved in the fraud. The vigilance department is scrutinizing bank records, transaction statements, and farmer accounts to reconstruct the financial trail. The court has remanded Khora to judicial custody, and further investigations are ongoing.
This case highlights the vulnerability of cooperative banking systems in rural areas, where farmers often rely on LAMPS for crop loans. The misappropriation of funds intended for agricultural development has raised concerns about oversight and accountability in such institutions.
