PEO 'siphons off' pension money in Balasore; returns funds to beneficiaries after MP’s intervention

A Panchayat Executive Officer (PEO) in Balasore district has partially returned siphoned pension money to beneficiaries after he was caught allegedly forging thumb impressions to withdraw their dues.

Reportedly, the accused officer, Gautam Sethi of Kunduli Panchayat under Baliapal block, refunded the amount along with interest when Balasore MP Pratap Sarangi confronted him publicly, before ordering an investigation into pension disbursement across the entire panchayat.

According to sources, the repayment came after prolonged complaints from villagers that pension money was not reaching them despite regular eligibility. MP Sarangi said he ensured money was counted and returned on the spot, with the PEO accepting his wrongdoing in writing and promising complete repayment within a week.

PEO Blocked Payments, Declared Beneficiaries ‘Ineligible’

Speaking to OTV, locals alleged that the PEO had been siphoning off pension amounts for a long time by using fake thumb impressions and denying access to rightful beneficiaries. A petitioner described how he was deliberately misled every time he asked about his pension and was even humiliated.

“When I inquired about my pension money, he said that I am ineligible as I reside somewhere else,” the beneficiary recounted, adding that when he questioned again over the phone, “he reprimanded me, asking if I had no timetable to call him at such an hour.”

These repeated refusals and intimidation allegedly allowed the PEO to continue withholding pension funds from multiple beneficiaries, villagers claimed. Two beneficiaries received only partial repayment today, while the remaining amount will be returned within a week.

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Previous Officer Also Linked

According to MP Pratap Sarangi, the repayment followed a written confession. He said the PEO admitted to forging thumb impressions to illegally withdraw pension money.

“He has accepted in writing that he had forged fingerprints and siphoned off pension funds,” Sarangi said after overseeing the money return. He added that the first priority was restitution, saying, “They have paid some amount today and have sworn to repay the entire sum within seven days.”

The MP further revealed that a former officer posted in the same panchayat had also misappropriated pension funds, saying, “The officer who was stationed here before him has also done the same laundering. We are tracing him.” Sarangi said he had calculated the amount due from both officials and insisted the money must be returned with interest.

He has instructed the BDO to expand the probe beyond the current accused, directing, “I have asked him to investigate the entire panchayat.”

ALSO READ: Elderly man beaten to death by son over pension money in Odisha’s Ganjam

PEO Denies Allegations After Repaying Money

Despite signing a written undertaking admitting fraud, the PEO attempted to deny wrongdoing after the money was retrieved. He called the matter a ‘misunderstanding’ but did not contest having returned funds.

“No such thing (money laundering). There was a misunderstanding, but it was resolved today. There were allegations, but all of them have been resolved,” he claimed, contradicting his signed confession.