The action came after the Enforcement Directorate (ED) carried out raids at various offices and residential premises of Patnaik and his related entities at Joda in Keonjhar district of the state.
Patnaik, popularly known as Jitu Patnaik, is a former independent MLA from the Champua assembly constituency.
The agency alleged he "derived undue pecuniary advantage by way of illegal mining without necessary statutory approvals."
"A seizure of cash amounting to Rs 70 lakh and 124 fixed deposits amounting to Rs 133.17 crore has been made during the search operations along with seizure of various incriminating documents and digital evidences," the ED said in a statement.
The money laundering case stems from the FIR and charge sheet filed by the Odisha vigilance cell against Patnaik and others.
"As per the charge sheet filed by the state vigilance, the accused indulged in illegal mining for a long period causing huge loss to the government exchequer which amounts to be more than Rs 130 crore."
"The ED has been able to recover almost entire amount of proceeds of crime," it said.
