BJD Leader Soumya Shankar Arrested in Rs 185 Crore Transport and Corruption Scandal

Bhubaneswar: In a major breakthrough in a high-profile corruption case, the Economic Offences Wing (EOW) of the Odisha Crime Branch on Thursday arrested Biju Janata Dal (BJD) leader and prominent mineral transporter Soumya Shankar, also known as Raja Chakra.

The arrest follows an intensive investigation into large-scale misappropriation of funds and corruption linked to the Gandhamardan Loading Agency (GLA) in Keonjhar district, which allegedly defrauded over Rs 185 crore meant for the welfare of local villagers.

Crime Branch Director General Vinaytosh Mishra, addressing a packed press conference, detailed how the EOW uncovered a sophisticated network of financial fraud involving top officials of the cooperative society responsible for overseeing mining-related transportation and development activities in the Gandhamardan hills region. The investigation was initiated after a villager lodged a formal complaint, triggering a deeper probe into the operations of the agency.

According to the EOW’s findings, the Gandhamardan Loading Agency generated approximately Rs 185 crore in revenue between 2017-18 and March 2024. However, a detailed financial audit exposed glaring discrepancies in the fund's utilization:

Audit revealed that though Rs 34 crore was earmarked for periphery development in villages affected by mining activities, but no visible development work was carried out. Similarly, Rs 9.1 crore was illegally diverted to a fuel station, Maa Kali Petrol Pump, which never supplied fuel to the cooperative's vehicles. Instead, the fuel was used for vehicles belonging to Raja Chakra's transport companies.

The audit also found that Rs 74 crore was shown as loading charges and labour payments, but a review of muster rolls and payment vouchers revealed major inconsistencies and potential forgery.

Further investigation revealed that Chakra used his influence over the cooperative’s management through his close associates — Sadashiv Samal, Sudhansu Shekhar Naik, and Samir Jena — despite not holding an official position in the cooperative. The EOW found that Chakra’s rise to influence in the region was partly due to his strategic distribution of approximately Rs 33 crore among local villagers, ensuring their support and loyalty.

The investigation also exposed Chakra's growing business empire, which included four transportation and mining-related companies —Shankar Mineral, Shankar Transporting, Shankar Roadways, and Shankar Projects. The funds allegedly siphoned from the cooperative were funneled into these companies, bolstering Chakra’s financial and political clout.

The EOW has seized 42 vehicles linked to Chakra, along with two screening plants. Additionally, several of Chakra’s bank accounts have been frozen, with authorities blocking approximately ₹25 lakh. The owner of Maa Kali Petrol Pump has also testified before a magistrate, providing evidence of the fraudulent transactions.

Crime Branch DG Mishra confirmed that the investigation is expanding to uncover the full extent of the scam and identify other potential beneficiaries within the political and business networks. Officials are now preparing for a comprehensive financial audit of the cooperative, which has not conducted any audits since 2012-13.

“We have gathered strong documentary evidence linking Raja Chakra and his associates to the misappropriation of funds. Further investigation is underway to determine the role of other individuals involved and to recover the embezzled funds,” said Mishra.