India, March 19 -- The Odisha vigilance department has busted a family-run scam that went undetected for nearly six years, arresting a bank branch head and his retired headmaster father for allegedly siphoning off Rs.5.56 crore from government funds in Bhadrak district.

Matruprasad Mohanty, branch head of Jana Small Finance Bank in Bhadrak, was arrested on Wednesday for his alleged role in routing siphoned funds. The alleged mastermind, his father Pradip Kumar Mohanty, a retired headmaster reappointed in the Korei Block education officer office, was arrested early Thursday along with his wife Gitarani Mohanty from a hotel in the Charampa area of Bhadrak.

According to Vigilance officials, Pradip Mohanty, who had been working in the Korei...