Govt suspends cop arrested in chit fund scam

The state home department today issued the suspension order of deputy superintendent of police (DSP) Pramod Panda with retrospective effect from December 19, the day he was arrested over allegations of availing benefits from tainted chit fund companies.

Several political parties, including chit fund probe petitioner Alok Jena had questioned the silence of the state government even weeks after his arrest because as per the norms, a government employee is supposed to be suspended within 48 hours of his or her arrest in a criminal case.

Panda was arrested by the Central Bureau of Investigation (CBI) on December 19 on charges of larger conspiracy and deriving undue financial benefits from the Artha Tatwa (AT) Group while he was working with the Crime branch section of state police. He is the first police officer to be arrested in the case.

The special CBI court denied his bail plea on December 24 at the end of five-day CBI remand. He is presently lodged at the Jharpada jail.

Opposition leaders and sources said the government did not want to issue Panda's suspension order anticipating grant of his bail application. But when it was denied, it had no option but to issue the order with retrospective effect.

During the course of its investigation to find out money trail of tainted chit fund firms, the CBI had stumbled upon evidence of Panda's association with AT Group chief Pardeep Sethy. In the raid conducted at the police officer's Bhadrak residence on November 18, the central agency had seized some crucial documents that revealed financial transactions between him and the AT Group.

AT Group is under scanner for unauthorisedly raising several hundred crore rupees from the public. Its chief Sethy has been arrested since last year over charges of forgery and other provisions of criminal laws.