Secretary general of Orissa Jana Morcha (OJM), Jajneswar Babu, was on Wednesday arrested by the state vigilance sleuths for his alleged role in “illegal” sanction of `33.18 crore loan to Bijayananda sugar mill in Bolangir district.
According to vigilance cell SP Sashi Bhusan Mishra, Jajneswar facilitated the loan in 2010 when he was heading the Orissa State Cooperative Bank as its president. The loan was sanctioned in 12 establishments.
“Despite the advice by the National Bank for agriculture and rural development not to sanction loan to the loss-making sugar unit, Jajneswar released the money to it. The money, according to the audit report, was diverted for other purposes instead of being utilised for capacity improvement of the mill,” Mr Mishra said.
Sources in the government said although net worth of the sugar unit was just 13 crore in 2010, it was surprisingly sanctioned `33.18 crore loan as against its assessed eligibility of Rs 5 crore.
Jajneswar was remanded in judicial custody till May 4 as hearing on his bail plea could not take place on Wednesday. Reacting to his arrest, the OJM leader who was an influential general secretary in the ruling BJD before joining his present party said the action against him was taken at the behest of chief minister Naveen Patnaik.
“Why did not they (BJD leaders) get me arrested when I was with them? I have been a victim of political vendetta. The chief minister wants to settle score with me because I quit his party BJD,” Jajneswar said, adding, he did not commit any mistake in releasing money to the sugar mill “to revive the only industrial unit” in an underdeveloped district like Bolangir.