BJD leader Soumya Shankar Chakra arrested by Odisha EOW in embezzlement case
Soumya Shankar Chakra was accused of orchestrating an attack on CM Mohan Charan Majhi when he was Odisha BJP legislative party’s chip whip in October 2021
BHUBANESWAR: A 42-year-old Biju Janata Dal (BJD) leader Soumya Shankar Chakra was arrested on Thursday in mines-rich Keonjhar district on charges embezzling money from a transport cooperative society intended for the welfare of villagers affected by mining activities.
Chakra, vice president of BJD’s youth wing, was taken into custody by Odisha Police’s Economic Offences Wing (EOW) after interrogation on Thursday, said Criminal Investigation Department (CID) additional general of police Vinaytosh Mishra.
A case was registered by EOW about defalcation of funds on a complaint by a villager who lives near the Gandhamardan mines on February 7.
Mishra said Chakra was arrested following investigators came across evidence in support of accusations of his involvement in embezzlement of crores of rupees from Gandhamardan Loading Agency and Transporting Cooperative Society Limited, a transport cooperative in Keonjhar meant for welfare of mining affected people.
“Investigation revealed the cooperative society that did loading of iron ore in Gandhamardan for Odisha Mining Corporation, earned about ₹185 crore between 2017-18 and March 2024. Of that ₹34 crore was withdrawn for Gandhamardan mines peripheral development, but no work was executed. Additionally, ₹9.1 crore was paid to a fuel station that supplied fuel to Chakra’s vehicles rather than the cooperative society,” he said.
Mishra added that the cooperative had distributed ₹33 crore to local villagers who supported Chakra. “While ₹74 crore was recorded as mineral loading charges and labour payment, with significant discrepancies in muster rolls and vouchers. The society has not undergone auditing since 2012-13,” Mishra said.
EOW officials allege that Chakra funneled money from the cooperative which he controlled through his associates.
To be sure, Chakra was accused of orchestrating an attack on chief minister Mohan Charan Majhi in October 2021 when Majhi was the Bharatiya Janata Party legislative party’s chief whip. Two people on a bike had hurled country-made bombs at Majhi’s car in October 2021 when he was returning from a public meeting in his Keonjhar constituency.
Odisha’s Keonjhar district is considered to be the hub of the iron ore mining in the state and contributes 35% of the country’s iron-ore production.
Investigators said fraudulent paperwork was allegedly used to inflate costs, such as labour payments and expenses for peripheral development in the cooperative society. Chakra and some others had monopolised mining operations and allegedly charged exorbitant rates for loading iron ore, significantly higher than industry norms.
The EOW has seized 42 of his vehicles and frozen bank accounts containing nearly ₹25 lakh. On February 8, EOW arrested the society’s former president Manas Ranjan Barik and secretary Utkal Das in connection with the fraud.
“The cooperative has not conducted an audit since 2012 and 2013. A detailed audit will be conducted to ascertain the total misappropriation of funds,” said Mishra.
Senior BJD MLA and former minister Badri Patra alleged that Chakra was backed by the district’s former collector Ashish Thakare and superintendent of police Mitrabhanu Mohapatra. “They were also a part and parcel of the illegal activity. The duo had a share in the loot of mines, financial irregularities, and kickbacks. They were in Keonjhar for nearly 5-6 years and with their active support, Chakra had spread his business empire,” alleged Patra.
The two civil servants did not respond to the MLA’s allegations.
