Odisha EOW to probe swindling of death benefits by labour department officials
The Odisha labour department officials have been accused of using dubious methods to swindle government funds meant for families of hundreds of deceased construction workers
The Odisha government has asked the Economic Offences Wing of Odisha Police to probe into the alleged embezzlement of death benefits of construction workers in Rayagada district by showing them as deceased.

State labour and employment minister Ganesh Ram Singh Khuntia told the State Assembly on Tuesday that his department has asked the EOW to probe into allegations of former Rayagada district labour officer Jasmine Subhadarshini Sahu and her associates using dubious methods to swindle government funds meant for families of hundreds of deceased construction workers under Nirman Shramik Kalyan Yojana of the state.
Replying to a question on death benefits to the families of construction workers in 2022-23 and 2023-24, Khuntia said the mastermind of the scam, former district labour officer of Rayagada Jasime Subhadarshini Sahoo and her associates have been accused of forging documents and using non-existing mobile phone numbers as contact details to generate fake death certificates. Sahoo has been suspended.
The Odisha Building and Other Construction Workers Welfare Board, created under the Building and Other Construction Workers (RE&CS) Act, 1996, gives ₹2 lakh to the next of the kin of a deceased construction worker in case of accidental death and ₹1 lakh in case of natural death. A cess of 1% is collected from all ongoing construction projects to provide welfare benefits to registered construction workers across the State. Those who are registered with the OBOCWWB are entitled to assistance in case of accidents or deaths, as well as support for funeral, medical, marriage, maternity, and educational needs. Besides, workers are provided with assistance to acquire working tools, bicycles, safety equipment, and to build houses, or upgrade their skills.
In the last two financial years, death benefits were given to 1,599 next of the kins of the deceased construction workers in Rayagada district, of which the deaths of 1,200 may have been forged in government records by a cabal of officials, trade union leaders and middlemen.
Verification revealed funeral and death benefits of at least six construction workers were availed without the knowledge of the actual nominees. At least 20 death cases were verified on a single mobile phone number issued in the name of Kusulia, a member of Odisha Forestwood Agriculture and Building Construction Workers Union. In one case, funeral and death benefits of a construction worker named Laxmi Majhi were released despite she being alive.
So far, over 42.66 lakh people have registered as construction workers with the OBCWWB. Cumulatively, ₹4,571.84 crore has been collected in Odisha, while ₹3,588 crore has been spent.
ABOUT THE AUTHORDebabrata MohantyDebabrata Mohanty is a senior assistant editor of Hindustan Times who works as state correspondent from Odisha covering the state's politics, governance, public policy, natural disasters, environment and its society for close to three decades. With his long years of reporting from the state capital of Bhubaneswar, Mohanty has been known as one of the most experienced and credible journalists covering Odisha for the national English dailies. His reporting combines on-ground detail with deep institutional knowledge detailing the state's changing politics, governance issues, administrative reforms and the functioning of its public institutions. He has regularly reported on issues ranging from legislative developments and public policy implementation. Politics is his core areas of expertise as he closely tracks Odisha's political landscape, including the rise and transformation of the Bharatiya Janata Party (BJP), the Biju Janata Dal (BJD), the two principal political parties in Odisha. His long association with the state's political establishment enables him to write on contemporary developments in a larger political context. Mohanty takes a deep interest in writing human interest stories, environmental issues and documenting the impact of cyclones, floods, heatwaves, and other climate-related events in one of the most disaster-prone states. His coverage extends to public health, governance reforms and stories on accountability of government institutions. Before joining Hindustan Times, Mohanty worked with The Indian Express, Mail Today, and The Telegraph, where he covered at least six general elections and as many assembly elections. In 2007, he was selected for the prestigious Chevening Young Indian Print Journalist Programme at the University of Lincoln, United Kingdom, where he received advanced training in print journalism. In 2009 he won the Press Institute of India-International Committee of Red Cross award on conflict reporting for his on-ground reportage of 2008 Kandhamal riots.Read More

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