Sudhansu (Bureau chief Southern Odisha)
Massive Corruption Scandal Unfolds in Rayagada’s Watershed Project
Rayagada, March 8, 2025 – A massive corruption scandal has surfaced in Rayagada district, exposing deep-rooted financial irregularities in the watershed project managed by the Soil Conservation Department. The vigilance department has launched a full-scale investigation into the alleged misuse of funds meant for critical environmental and agricultural initiatives.
Following complaints of large-scale embezzlement between 2022-23 and 2023-24 in the Kashipur block, an independent team from the Jaypur vigilance department has begun its probe. Sources indicate that corruption has plagued the department since 2021, affecting multiple projects, including pond excavation, tree plantations, and mango sapling distribution.
Fraudulent Transactions and Ghost Beneficiaries
Reports suggest that funds intended for MGNREGA activities—such as afforestation and land development—were siphoned off without any work being done. The money was reportedly transferred to individuals in Padmapur and Gudari blocks, far from the actual project sites. Shockingly, bank transaction records have revealed dubious fund transfers, implicating several officials and contractors.
Additionally, under the MNREGA scheme, the Soil Conservation Department claims to have planted silver oak trees across 24 panchayats in Kashipur block. However, when the vigilance team conducted site inspections, many of the supposed plantation areas could not be identified. Fake land records and ghost farmers have now come under scrutiny, suggesting that grants were misappropriated through falsified documents.
Investigators Uncover Widespread Irregularities
A 15-member team, including Additional SP Ananta Prasad Mallik, Bhawanipatna DSP Pradeep Kumar, Inspector Sanjay Pradhan, and other vigilance officers, is leading the inquiry. So far, investigators have found glaring discrepancies in the allocation of funds for land cultivation:
115 hectares were reported as cultivated in 2022-23
1068 hectares in 2023-24
3000 hectares projected for 2024-25
However, the actual work on the ground does not align with these claims. The Department of Rodent Control and Agroforestry allegedly provided free fodder to farmers for shade nets used in coffee cultivation. But in reality, large amounts of this funding have gone unaccounted for.
Horticulture Department Also Under Scrutiny
The scandal doesn’t stop at the Soil Conservation Department. The horticulture department is also being investigated for similar fraudulent activities in the Thuamul Rampur area during the tenure of AHO Patnaik. RTI activists have raised concerns about the misuse of government funds, further deepening the corruption scandal.
A ₹26.77 Crore Fraud?
Over the past three financial years, a staggering ₹26 crore 77 lakh 12 thousand was allocated to the Rayagada watershed mission solely for silver oak plantation. However, with large portions of the designated lands missing from field reports, the scale of financial mismanagement appears alarming.
Next Steps in the Investigation
The vigilance team has now seized documents related to land allocations and bank transactions, advancing their inquiry. Regional staff members involved in the project are being questioned, and former officials—including the former director of the water conservation project—are likely to face legal scrutiny.
With growing public outrage and mounting evidence of widespread embezzlement, residents of Kashipur block and surrounding areas are demanding swift action. The Rayagada ITDA and Kashipur block administration, which oversaw these projects, are now under intense pressure to explain how such large-scale corruption went unnoticed for years.
This unfolding scandal raises critical questions about governance and accountability in Rayagada. The vigilance probe is expected to expose the full extent of the fraud in the coming days, but the damage to public trust has already been done.
