A Political Figure Entangled in Financial Fraud
The Economic Offences Wing (EOW) of the Odisha Police has arrested Soumya Shankar Chakra, a prominent mining trader and youth leader of the Biju Janata Dal (BJD), in connection with a multi-crore financial fraud case. Chakra, widely known as Raja, was apprehended after the Orissa High Court rejected his pre-arrest bail petition in the case involving the Gandhamardhan Loading Agency and Transporting Co-operative Society. His judicial custody has been extended until March 19.
Chakra, a controversial figure, was previously accused of orchestrating an attack on Odisha Chief Minister Mohan Charan Majhi in 2021, when Majhi was serving as the Opposition Chief Whip.
The Fraud Allegations and Arrest
Despite not holding an official position within the Gandhamardhan Loading Agency and Transporting Co-operative Society, the EOW claims that Chakra exercised control over the organization through three associates. He is also the founder of several businesses, including Sankar Mineral, Shankar Transporting, Shankar Roadways, and Sankar Project, through which he allegedly carried out financial irregularities.
Crime Branch Director General Vinaytosh Mishra confirmed that a clear-cut financial fraud case amounting to Rs 9.1 crore has been established against Chakra, with ongoing investigations to uncover further details. Authorities have so far seized 42 vehicles and two screening plants linked to Chakra. Additionally, multiple bank accounts holding deposits of around Rs 25 lakh have been frozen as part of the investigation.
The Origins of the Scam: Gandhamardhan Loading Agency
Gandhamardhan Loading Agency was established in 2006 as a cooperative society by local residents in the vicinity of the Gandhamardhan mine, owned by the state-run Odisha Mining Corporation. The cooperative was meant to generate profits for reinvestment into the welfare of the affected community members. However, allegations suggest that funds were misappropriated under Chakra’s influence, with forged documents inflating labor costs, provident fund deductions, infrastructure expenses, and peripheral development costs.
The scam allegedly spanned from 2017 to 2024, during which time the loading agency generated an estimated Rs 185 crore in revenue. Investigators suspect that Chakra may have been aided by high-ranking officers in the district administration and police.
Judicial Proceedings and Future Legal Actions
Following his arrest, Chakra was presented before a court in Balasore, which placed him in judicial custody until March 19. Notably, the EOW did not request his remand for interrogation, while his legal team refrained from applying for bail. His lawyer, however, has indicated plans to request legal representation in the event of further interrogation by the EOW.
The probe is now focused on uncovering any potential political and administrative support that may have facilitated the scam. Authorities are investigating whether Chakra colluded with influential figures to sustain his fraudulent operations.
Possible Outcomes and Implications
The ongoing investigation into the multi-crore fraud case could have significant political and legal repercussions. If further evidence emerges linking Chakra to high-ranking officials, the case could expose deeper corruption within Odisha’s mining and transportation sector. Additionally, the outcome may influence the political landscape of the state, given Chakra’s affiliation with the ruling BJD party.
With the investigation still unfolding, the EOW is expected to delve deeper into Chakra’s financial transactions, potential accomplices, and the full extent of misappropriated funds. If convicted, Chakra faces severe legal consequences, including extended imprisonment and financial penalties.
The case serves as a reminder of the persistent corruption risks in resource-rich states like Odisha and underscores the importance of stringent oversight and transparent governance in cooperative institutions handling public funds.
(With inputs from agencies)
