The Orissa High Court today rejected the bail application of former BJD legislator Subarna Naik, who was arrested by CBI last year in connection with his alleged involvement in the chit fund scam.
Naik, a native of Keonjhar, was one of the directors of Nabadiganta Capital Services at the time of his arrest.
The company with which Naik was associated had amassed over Rs 15 crore from different small investors by opening branches across the state.
Although the CBI has submitted a preliminary charge sheet against Naik and few others involved in the case, the single judge bench of Justice J P Das was not inclined to grant bail to the former legislator and rejected his plea.
On the other hand, the high court granted conditional bail to businessman Dilip Mohanty, who was arrested by CBI in November last year.
Mohanty, an accused in the Arthatatwa (AT) group chit fund case, was allowed to go on bail after furnishing a bail bond of Rs one crore.
