The Odisha Government has directed the Economic Offences Wing (EOW) of the Crime Branch to probe into alleged bungling of crores of rupees by faking the death of construction workers in Rayagada district.

The misappropriation of funds earmarked for the welfare of construction workers registered with the Odisha Building and Construction Workers’ Welfare Board (OBCWWB) has been departmentally inquiry into and charges of monetary bungling has been established, Labour Minister Ganesh Ram Singh Khuntia told the Assembly on Tuesday in a written reply.

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Rayagada District Labour Officer, Jasmine Subhadarshini Sahoo has been placed under suspension after prima facie charges were found against her. An First Information Report (FIR) has also been filed with the local police in this connection, the minister said.

A Special audit has also been ordered to ascertain the exact amount of misappropriation of government funds, the minister added.

Death benefits were disbursed towards the legal heirs of 1910 deceased during 2022 to 2024 in Rayagada district. However, as many as 1200 death claims were found to be fake with the racket headed by the suspended officer reportedly bungling a sum of Rs 25 crores.

The Odisha Building and Other Construction Workers’ Welfare Fund was created by the previous BJD Government to extend social security benefits to registered construction workers.

The registered workers are entitled to accidental and death, funeral, medical marriage, maternity and educational assistance. Furthermore, workers are entitled assistance for working tools, bi-cycle, safety equipment, house building and skill upgradation.