The Orissa High Court on Friday rejected the bail application of former BJD legislator Subarna Naik, who was arrested by the 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 the Nabadiganta Capital Services at the time of his arrest. The company had amassed over `15 crore from small investors by opening branches across the State.
Although the CBI has submitted a preliminary chargesheet against Naik and some others, Justice JP Das was not inclined to grant bail to the former legislator.
On the other hand, the High Court granted conditional bail to businessman Dilip Mohanty, who was arrested by the CBI in November last. Mohanty, an accused in the Artha Tatwa (AT) Group chit fund case, was allowed to go on bail after furnishing a bail bond of `1 crore.