Two employees, Sanjeev Dash and Prabhudutta Sahu, allegedly engineered the plot and later involved six others persons to execute the plan, the police said.
The deputy director agriculture had a Krishi Vikash Yojana account with the State Bank of India at Sambalpur, they said.
Institute of Management for Agriculture Extension (IMAGE) had credited Rs 39, 86,125 in four phases in the account, the sources said.
"The matter came to light on September 21 when the group withdrew cash from the bank fraudulently," they said.
