Chit fund scam: CBI arrests BJD MP, two former MLAs

Sources say that the three have been arrested on charges of criminal conspiracy, cheating and diversion of funds

The allegation of involvement of politicians in the multi-crore chit fund scam in Odisha has got murkier with the CBI (Central Bureau of Investigation) arresting thee politicians in connection with their links with scam-tainted chit firms, here, today.

The arrested persons are sitting Biju Janata Dal (BJD) member of Lok Sabha, Ramachandra Hansda, former BJD MLA from Keonjhar, Subarna Naik and former BJP MLA from Khariar, Hitesh Bagarti. They were all former directors of Nabadiganta Capital Financial Services, which is accused of swindling crores of rupees from depositors.

Following the arrest, the ruling BJD has suspended Hansda and Naik from the party.

The arrest of three politicians comes close on the heels of booking of BJD MLA from Banki, Pravat Tripathy, who was taken into custody by CBI on charges of his links with Artha Tatwa chit fund firm.

Hansda and the two former legislators were summoned to the CBI office today and grilled by CBI sleuths for couple of hours before being arrested.

Sources said, the three have been arrested on charges of criminal conspiracy, cheating and diversion of funds.

BJD spokesperson Rabi Narayan Nanda said, “No one is above law. As there was prima facie evidence againt these leaders, CBI has arrested them. Their arrest will not tarnish the image of the party.”Recently, the probe agency had arrested Anjan Kumar Baliarsingh, chairman-cum-managing director (CMD) and two directors Kartikeya Parida and Pradeep Patnaik of Nabadiganta Capital Financial Services.The company had collected about Rs 15 crore through its branches located in undivided Puri and Cuttack districts between 2011 and 2013. Though it claims to have paid back Rs 7.30 crore to some depositors, the rest amount has not been refunded.

Earlier during the interrogation, BJD MP, Hansda had said that he was persuaded to join Nabadiganta Capital Services as a director by its CMD, Baliarsingh, but resigned once it became a public limited company in 2013. Former BJD MLA, Naik, had also denied any financial transaction with the tainted firm.In July, CBI had raided the houses of these leaders and seized some incriminating documents. During the raid, the investigating agency had recovered Rs 28 lakh from Hansda's Rairangpur residence, which he had claimed to have kept for renovation of his house.