Bhubaneswar, March 19 -- Odisha Vigilance has arrested a bank official in connection with a Rs 5.56 crore embezzlement case involving alleged misappropriation of government funds from the office of the Block Education Officer (BEO) in Korei block of Jajpur district.

The accused, Matruprasad Mohanty, Branch Head of Jana Small Finance Bank in Bhadrak, was arrested on March 18 and forwarded to the court of the Special Judge, Vigilance, Cuttack. His father, Pradip Kumar Mohanty, a retired headmaster re-engaged at the BEO office in Korei, has also been named in the case for his alleged role in the fraud.

According to Vigilance officials, the scam involved manipulation of the Human Resource Management System (HRMS) to siphon off government fu...