NEW DELHI – The Central Bureau of Investigation (CBI) Anti-Corruption Unit I (AC-I) has registered a formal case against one of its own officials and a dispatch officer from Mahanadi Coalfields Limited (MCL) for their involvement in a deep-rooted corruption and extortion nexus. The First Information Report (FIR), filed on January 28, 2026, follows a detailed investigation into allegations of criminal conspiracy, cheating, and the regular exchange of bribe money.
The Key Accused
The primary suspects named in the investigation include:
- Prashanta Kumar Pallei (P. K. Pallei): Assistant Sub Inspector (ASI) of Police, CBI, ACB, Bhubaneswar.
- Sarada Prasad Sethy (S. P. Sethy): Dispatch Officer at MCL, Garjanbahal Open Cast Project, Basundhara Area.
- Other unknown public servants and private individuals.
The Corruption Nexus
Investigations revealed that ASI Pallei entered into a partnership with S. P. Sethy to collect “protection money”. Sethy allegedly used his official capacity at MCL to collect illegal payments from coal transporters and lifters. In exchange for bribes, Sethy favored these transporters by dispatching extra coal loads or mislabeling high-grade coal as low-grade.
In return for his cut, ASI Pallei reportedly used his position within the CBI to protect Sethy from investigative agencies and influence his career. Pallei is even alleged to have secured Sethy’s current lucrative posting by threatening the MCL General Manager, Shri P. B. Reddy.
Specific Allegations of Bribery and Extortion
The FIR details several specific instances of illegal financial transactions occurring between June and September 2025:
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- Bank Transfers to Family: On multiple occasions, Pallei instructed Sethy to send bribe money to his son’s bank account. On July 17, 2025, an amount of ₹1,00,000 was credited to the account of Pallei’s son, Satya Prakash Pallei, from a coal transporter. Of this, ₹70,000 was immediately transferred to Pallei’s wife, Swarnalata Pallei. A second ₹1,00,000 transfer was recorded on September 24, 2025.
- Proxy Staff and Salary Skimming: Pallei directed Sethy to arrange a private person to work as a typist for a CBI DSP. The salary of ₹25,000 per month was paid by a private company. Pallei allegedly received this salary in his own account, kept ₹5,000 for himself, and forwarded only ₹20,000 to the worker.
- Leak of Confidential Info: Pallei allegedly pressured an MCL officer to provide secret details regarding catering tenders and quotations, threatening the officer with a summons to the SP’s office if he did not comply.
- Logistical Favors: Sethy reportedly paid ₹7,000 in hiring charges for a vehicle used by Pallei to travel to his native place in Berhampur on August 2, 2025.
Legal Action and Investigation
The case has been registered under several sections of the law:
- BNS, 2023: Sections 61(2) (Criminal Conspiracy) and 318(4) (Cheating).
- Prevention of Corruption Act, 1988 (as amended in 2018): Sections 7 and 8, regarding public servants taking bribes and private persons bribing public servants.
The CBI has obtained the necessary prior approval under Section 17A of the PC Act to register the case against the public servants involved. Deputy SP Amit Kumar Dwivedi of the CBI AC-I New Delhi has been appointed as the lead investigating officer to probe the matter further.
