A former vice-president of Biju Janata Dal and now right-hand man of Naveen Patnaiks bete noire Pyari Mohan Mohapatra was on Wednesday arrested by Orissa anti-corruption police on charges of defrauding the states largest cooperative bank to the tune of Rs 36 crore.
Sleuths from states vigilance department arrested Jagneswar Babu,secretary general of Pyari Mohan Mohapatras Odisha Jana Morcha,over his role in advancing loan to a cooperative sugar mill in Bolangir district in blatant violation of guidelines of NABARD.
Jagneswar,who is also one of the directors of the National Federation of State Cooperative Banks and National Federation of Cooperative Sugar Factories Limited,was produced before the Court of Special Judge (Vigilance),Bhubaneswar,and sent to judicial custody till May 4 when his bail application would be heard.
State vigilance officials said Jagneswar,during his tenure as president of Orissa State Cooperative Bank,a scheduled cooperative bank,illegally sanctioned and disbursed different types of credit facilities amounting to Rs 36.18 crore to Bijayananda Co-operative Sugar Mills in Bolangir in connivance with the loan committee members of the bank without adequate security. Incidentally,Jagneswar was also the president of Bijayananda Sugar Mills when the loan was
Instead of have recusing himself from the loan committee proceedings of the OSCB,Jagneshwar along with the managing director of the bank,Tushar Kanti Panda,gave away the loans. During inquiry it is found that the loans were not utilised for the purpose for which they were sanctioned and disbursed,rather the funds were siphoned off and diverted unauthorisedly,causing huge loss to state exchequer.