Cuttack, Oct 31 (PTI) The Orissa High Court on Friday rejected the bail pleas of two accused, Soumya Sankar Chakra alias Raja and Susanta Kumar Samal, in connection with a massive financial fraud involving the Gandhamardan Loading Agency and Transporting Co-operative Society Ltd.

Delivering the judgment, Justice Gourishankar Satapathy observed that "bail involves balancing individual liberty and societal interest," but noted that the accused were "influential persons" capable of influencing witnesses.

"Considering the magnitude of the financial fraud and ongoing investigation, it is undesirable to grant bail at this stage," the court added.

The case pertains to allegations that office-bearers of the society misappropriated between Rs 40–50 crore annually from 2017–18 to 2023–24.

The society, originally set up for the welfare of villagers affected by mining operations in Keonjhar district, was allegedly turned into a front for illegal loading and transportation of iron ore, with proceeds siphoned off through forged bills and self-cheques.

During investigation, the Economic Offences Wing found transactions worth over Rs 175 crore against a declared income of Rs 184 crore.

Officials alleged that more than Rs 31 crore was transferred to unrelated accounts, including Rs 12.9 crore withdrawn through associates of petitioner Chakra and Rs 9.39 crore paid to a petrol pump without legitimate transactions.

Similarly, petitioner Samal was found to have received Rs 1.64 crore from the society’s account and admitted to signing 51 self-cheques purportedly for “periphery development,” which government officials later confirmed never occurred.

The Keonjhar district court in August had granted an interim bail to Raja Chakra for 15 days only to attend the last rites of his father-in-law.

Chakra and his associate were arrested in March. It may be mentioned here that the High Court had earlier rejected the pre-arrest bail of Chakra in March and his regular bail in May. PTI COR AAM AAM MNB

Financial fraud at a cooperative prompts court to refuse bail amid witness-influence concerns and an ongoing investigation. Bail pleas in a large alleged cooperative fraud were assessed against risks of witness tampering and the scale of suspected misappropriation, where investigators report diversion of funds via forged bills and self-cheques, transfers to unrelated accounts and payments for non-existent development works, and conclude that the ongoing Economic Offences Wing probe and the accused's potential to influence witnesses render bail undesirable at this stage.