‘Rs 65 Crore scam in Paradip Port’! CBI investigates alleged corruption

The Central Bureau of Investigation (CBI) raided the administrative offices of Paradip Port Authority (PPA) in Paradip town of Jagatsinghpur on Thursday, with particular focus on the chamber of Gangadhar Sethi, the Executive Engineer of its Road & Building division.

Also Read: Massive fraud emerges in Rs 65 crore Paradip Port development project

An eight-member team carried out the operation, although the precise details of the raid remain undisclosed. Reports suggest the investigation pertains to an alleged fraud of around Rs 65 Crore within the port's operations.

Earlier complaints by the port authorities to the Economic Offences Wing (EOW) had highlighted concerns over corruption. Moreover, several sub-contractors, claiming to have been deceived, had lodged formal complaints and appealed for scrutiny from the central and state investigative bodies, as well as intervention from the Chief Minister.

It is alleged that a contracting firm based in Hyderabad, DNC, secured a project worth Rs 65 Crore using three fake bank guarantees of Rs 10 Crore each. The project was linked to the development of a new township under the Smart Industrial Port City initiative in Paradip.

Speculation suggests the involvement of multiple officials from the port’s Road & Building division in this fraud. The CBI had previously visited last month for the preliminary probe.

No statements were received from the port authorities in this regard.

“A case has been registered and a detailed probe is underway. Further details will be made available to you later through our press release,” without divulging much details and remaining tight-lipped, CBI DSP, Pankaj Butt expressed.

Background of the scam

Rs 65 Crore development project at Paradip Port became the epicenter of corruption when DNC Infrastructure Pvt. Ltd. allegedly used a forged Rs 10 Crore bank guarantee. The fraud was compounded by a separate bribery scheme involving port officials and private companies, exposed through CBI raids from 2022 to 2025.

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Financial recoveries

Investigators recovered Rs 84.5 Lakh cash, jewellery, and property documents from accused's residences. Over Rs 41 Lakh was seized from one Charchit Mishra's premises alone. The fake bank guarantee aspect inflated the scam's scale to Rs 65 Crore.