Keonjhar: The Economic Offences Wing (EOW) of Odisha Police Saturday arrested Manas Ranjan Barik, former president, and Utkal Das, secretary of Gandhamardhan Loading Agency & Transporting Cooperative Society Ltd., on charges of large-scale fraud and misappropriation of funds worth crores.
The accused were produced before a designated OPID court in Balasore Saturday. According to sources, the case was registered acting on a written complaint by Biswanath Roul, alleging that the office bearers of the cooperative society misappropriated about `40-50 crore.
The cooperative society, which was engaged in loading iron ore from the Odisha Mining Corporation (OMC) mines, reportedly used forged documents to carry out its operations, the EOW stated in a press release issued after the arrests.
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Registered in 2006, Gandhamardhan Loading Agency & Transporting Cooperative Society Ltd. was established to load iron ore from Keonjhar mines with the objective of improving the economic well-being of local residents affected by mining activities. However, from 2017-18 to 2023-24, the society’s operations were allegedly monopolised by a small group of influential outsiders, including office bearers.
Investigations revealed that these individuals engaged in a criminal conspiracy, preparing fraudulent documents related to labour payments, peripheral development, infrastructure expenses, payments to affected members, and EPF deductions, misappropriating crores of rupees.
The cooperative society reportedly charged an exorbitant `60 per tonne for iron ore loading—significantly higher than other agencies—generating massive profits. Additionally, payments were made to various individuals and agencies without proper documentation such as tenders or work orders. Many transactions were unaccounted for, with payments made in cash or self-issued cheques lacking acknowledgment or supporting records in financial registers like the cash book, day book, and ledger.
The EOW investigation found that crores of rupees were funneled out of the cooperative society without proper documentation. Payments were made without specifying the nature of the work, project details, or the identities of contractors. Office bearers allegedly diverted funds in violation of the society’s bylaws.
The cooperative society had not undergone a financial audit since 2012, except for a special audit in 2022 prompted by local allegations. Despite uncovering serious irregularities, no action was taken against the accused office bearers at the time.
Most self-issued cheques lacked documentation explaining their purpose and were signed by Barik and Das. In labour payments, details of workers, proper signatures, and corresponding EPF deductions were missing, suggesting large-scale misappropriation. Many payments were acknowledged only with thumb impressions, raising further suspicions.
So far, the EOW has found out that Barik and Das conspired with other office bearers and influential outsiders to commit financial irregularities and misappropriate more than `35 crore. Investigators believe the total amount could be even higher as the probe continues. During the investigation, authorities seized incriminating documents, including registers, ledgers, vouchers, resolution books, special audit reports, and labour payment sheets from the accused and the cooperative society’s office.
PNN
