Kendrapara (Odisha), Jun 23 (PTI): A Panchayat Executive Officer (PEO) was arrested Wednesday in Kendrapara district for allegedly misappropriating Rs 10 lakh panchayat fund by forging the signature of a sarpanch, an official said.

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The accused, Minati Beska posted at Akhulipadagram gram panchayat, had allegedly withdrawn the money meant for developmental works from the joint account of the gram panchayat under Rajkanika police limits.

After the fraud came to light, the sarpanch, Kailash Chandra Tarai, had lodged an FIR.

Following an investigation, it was found that the officer had committed the fraud, Inspector Rajkanika police station, Umakanta Nayak, said.

The officer has been booked under several sections of the IPC and remanded to judicial custody, the police said.