Misappropriation Of 2 Crore CMC Funds: FIR Lodged Against Ex-Deputy Secretary, Former Caretaker

The Cuttack Municipal Corporation (CMC) has lodged a complaint at Purighat police station against ex-Deputy Secretary Nirmal Chandra Nayak and former Caretaker Pradeep Samal in connection with alleged misappropriation of funds to the tune of around Rs 2 crore.

The civic body has accused Nayak of embezzling the funds while working as deputy secretary and officer-in-charge of the Kalyan Mandap and Saheed Bhawan.

It is alleged that Nayak during his incumbency from February 1, 2009 till his retirement in 2012 and during his re-employment (July 18, 2012 to July 7, 2016), defrauded municipal funds exceeding Rs 2 crore on the pretext of booking of Kalyan Mandap and Saheed Bhawan.

The fraud was allegedly committed by Nayak in connivance with the ex-caretaker Pradeep Samal by issuing duplicate receipts and tampering of official records. The entire scam was detected during the conduct of an audit in 2016.

Subsequently, the ex-caretaker Pradeep Samal was placed under suspension and an FIR was registered against him. He was able to secure bail from Orissa High Court.

Later a petitioner moved the Odisha Lokayukta in connection with the scam seeking action against the concerned CMC officials. Based on the directions of the Lokayukta, the CMC has lodged a formal police complaint in connection with the misappropriation of funds.

Cuttack DCP, Prateek Singh said, “We have received a complaint and further investigation will be carried out in connection with the incident.”

Nirod Panda, a former councillor said, “Earlier no case or official proceedings was initiated against the ex-deputy secretary. It remains to be seen what action is taken in connection with the fraud.”

Arun Sethi, another councillor alleged, “We had urged the then Commissioner to take against the officials. However, no action was taken in this regard.”