Odisha EOW Cracks Down on Former MP N. Bhaskar Rao in Rs.80-Crore Truck Owners’ Association Embezzlement Case
Dr. Badal Tah,Odishabarta
RAYAGADA, November 6: The Economic Offences Wing (EOW) of the Odisha Crime Branch has launched widespread search and seizure operations targeting former Rajya Sabha Member of Parliament Nekkenti Bhaskar Rao and several of his key associates. The synchronized raids span 11 prime residential and commercial establishments across Rayagada and Bhubaneswar, centering on allegations of running a multi-decade extortion syndicate and embezzling approximately ₹80 crore from the Rayagada Truck Owners’ Association.
The coordinated operation adds significantly to Rao’s legal entanglements, coming closely on the heels of a Supreme Court directive ordering him to surrender in a high-profile 2010 murder case.
The Raid and Seizures
The operation commenced early on Friday when the EOW deployed eight specialized strike teams simultaneously across two districts.
At Rao’s primary residence in Raniguda Farm, Rayagada, a 21-member team from the Crime Branch led the raid under the supervision of Additional Superintendent of Police Ashish Kumar Mishra. The unit included:
* Five Deputy Superintendents of Police (DSPs)
* Five Police Inspectors
* Dedicated forensic audit specialists and cyber crime analysts
* Field investigative support personnel
Although the former lawmaker was not present during the operation, investigators questioned administrative staff, office supervisors, and household associates. Over several hours of intensive searching, officers impounded:
* Multiple digital storage units, hard drives, and office computer systems
* Physical account ledgers, cash receipt records, and handwritten registers
* Property deeds, land purchase agreements, and investment portfolios linked to corporate entities
Officials have kept the exact volume of seized cash, gold, and negotiable instruments confidential, noting that inventorying and digital cloning remain ongoing.
Background of the ₹80-Crore Embezzlement Allegations
The case originates from a criminal complaint originally registered with the Rayagada District Police by the late Y. Venkateswara Rao, former officiating president of the Rayagada Truck Owners’ Association. According to the complaint:
* Systemic Extortion: A parallel levy system operated without receipts for nearly two decades, targeting regional logistics and freight carriers moving through the industrial corridors of southern Odisha.
* Corpus Diversion: An estimated ₹80 crore belonging to the association’s corpus was allegedly siphoned off through falsified balancing entries, ghost expenditures, and unauthorized fund transfers.
* Layering through Private Firms:
The extorted proceeds were reportedly routed into private commercial vehicles, primarily encompassing real estate development, agribusiness ventures, trading firms, and energy projects.
Given the intricate financial engineering, cross-district transactions, and the involvement of multiple incorporated entities, the Rayagada Police transferred the case diary to the state’s specialized economic probe agency. Prior to the raids, an EOW fact-finding team spent two days in Rayagada cross-referencing banking transactions, municipal documentation, and association registers to establish prima facie evidence of money laundering.
Key Locations Under Search
The 11 targeted properties include residential premises of key figures as well as the corporate headquarters of linked business entities:
| # | Location / Entity | Category | Address / Details |
|—|—|—|—|
| 1 | Nekkenti Bhaskar Rao | Residential | Raniguda Farm, Rayagada |
| 2 | B. Manmadha Rao | Residential | Pitala Street, Rayagada |
| 3 | G. Krishna | Residential | Rayat Colony, Rayagada |
| 4 | Rayagada Truck Owners’ Association | Association Office | Main Road, Opp. Kapilas Hotel (nr. GOC Factory), Rayagada |
| 5 | Sri Aditya HP Enterprises | Commercial (LPG Agency) | Gautam Nagar, Rayagada |
| 6 | Sri Aditya Industries Pvt. Ltd. | Corporate Office | Plot No. 65, Forest Park, Bhubaneswar |
| 7 | Arun Power Project Ltd. | Corporate Office | M-167, Baramunda Housing Board Colony, Bhubaneswar |
| 8 | Ari Aditya Logistics Pvt. Ltd. | Commercial Office | Plot No. 223, Bhimpur, Bhubaneswar |
| 9 | Sri Aditya Trading & Marketing Pvt. Ltd. | Commercial Office | Plot No. 223, Bhimpur, Bhubaneswar |
| 10 | Shree Balaji Real Estates & Agri Developers | Real Estate Office | Plot No. 145, Block-B, Sector-A, Mancheswar IE, Bhubaneswar |
| 11 | Sri Aditya Real Estate & Agri Developers | Real Estate Office | Plot No. 145, Block-B, Sector-A, Mancheswar IE, Bhubaneswar |
Dual Legal Jeopardy: Mandangi Murder Case
The financial crackdown coincides with a critical setback for Rao in India’s apex court regarding the December 2010 abduction and murder of tribal leader Bhagirathi Mandangi.
A Supreme Court Division Bench comprising Justice Sanjay Kumar and Justice Sanjeev Sachdeva overturned the regular bail previously granted to Rao and his co-accused by the Orissa High Court. The bench determined that the High Court had misapplied statutory discretion and exceeded its jurisdiction by imposing non-standard release criteria contrary to settled criminal jurisprudence.
The Supreme Court issued a strict direction requiring N. Bhaskar Rao and the other accused individuals to surrender unconditionally before the Sub-Divisional Judicial Magistrate (SDJM) Court in Rayagada within a two-week window.
Political and Investigative Implications
Rao, who previously severed ties with the Biju Janata Dal (BJD) to establish the Biju Swabhiman Mancha, now faces the imminent prospect of judicial custody alongside an expanding multi-agency economic inquiry.
Legal experts observe that while the searches provide the EOW with foundational material, securing a conviction under anti-fraud and economic statutes will depend on:
* Reconstructing two decades of unreceipted cash collections through forensic financial modeling.
* Formally proving corporate alter-ego linkages between the Truck Owners’ Association and the corporate entities registered in Bhubaneswar and Rayagada.
* Tracing the end-use of funds through registrar filings with the Ministry of Corporate Affairs (MCA) and linked bank accounts.
