The Economic Offences Wing (EOW) of Odisha Crime Branch has arrested Biju Janata Dal (BJD) leader Dillip Kumar Nayak from Cuttack in connection with a cheating and forgery case involving over ₹12.42 crore.

Nayak, who had contested from the Nimapara Assembly constituency in 2024, lost to the BJP’s Pravati Parida by 4,588 votes.

According to an official release, a case was registered on the written complaint of Bijay Rout of Ranihat Malisahi, Cuttack, who alleged that Nayak had convinced him to invest in the real estate business jointly. Rout paid ₹7.42 crore for the purchase of land in Pandara, Bhubaneswar, which Nayak bought in his own name.

The release said Nayak also took ₹2 crore from Rout’s wife, formalised through three agreements on September 1, 2020. When pressed for repayment, Nayak issued 35 cheques worth ₹10.5 crore, most of which bounced owing to insufficient funds or signature mismatch — a deliberate ploy, the EOW said.

Over time, Nayak allegedly extracted further amounts under false assurances. He persuaded Rout to invest in land at Patia, taking additional amounts of money. Except for a token ₹1 crore repayment, the accused failed to return the rest.

In 2021, Nayak allegedly induced Rout to pay ₹3.5 crore for five acres at Trisulia but fraudulently registered himself as a joint owner. Later, he secretly sold 2.5 acres without Rout’s knowledge.

“The total amount involved in the forgery and cheating stands at ₹12.42 crore,” the EOW release stated. During the investigation, Nayak’s house was searched, yielding incriminating documents such as sale deeds, powers of attorney, agreements to sell and details of bank accounts in various names.

The EOW said Nayak systematically defrauded the complainant under the guise of providing land in prime locations in Bhubaneswar and Cuttack. Despite repeated complaints, he avoided repayment and continued siphoning funds.

Nayak, when approached, dismissed the case as politically motivated: “The action against me has been prompted by political interests.”

Police officers said a probe is underway to trace the money trail and identify possible accomplices. Sources indicated that more victims may come forward as Nayak is suspected of running similar fraudulent schemes in the past.

The case has drawn attention as Nayak is a prominent BJD face in Cuttack, and his arrest adds to the political tensions in Odisha ahead of crucial by-polls.