The Economic Offences Wing (EOW) of the State Crime Branch on Saturday arrested director of Microfinance ltd Baikuntha Patnaik and Panchayati Raj department Commissioner-cum-Secretary’s former Personal Assistant (PA) Ajay Swain on the charge of money laundering and issuing official letters without prior permission.
The arrest of Patnaik and Swain just ahead of the general elections appears to have been prompted by the need to dispel the public perception that the BJD Government is hand in glove with the chit fund companies.
PR dept staff, chit firm director arrestedActing on a complaint lodged by the Panchayati Raj department only after media reports about an unauthorised letter issued by Swain in favour of the Microfinance ltd, the EOW arrested the duo.
According to reports, Swain, during his stint as PA to the Panchayati Raj Commissioner-cum-Secretary, had issued a letter in the name of the former to all district Collectors not to take action against the Microfinance ltd, a nonbanking finance company, and allow it to continue its business since it had got prior permission from the State Government.
But as the report was flashed in a local TV channel and the BJP accused the Panchayati Raj Minister of his involvement in the chit fund scam, the Government placed Swain, who was recently transferred to the Home Department, under suspension.
It may be noted that the State Government was in an embarrassing situation during the hearing on the PIl on the chit fund scam in the Supreme Court on March 26 when it tried in vain to protect infamous ponzi firms like Seashore, Artha Tatwa and Asthaa.The latest media reports about the unauthorised official letter written from the Panchayati Raj Department in favour of a microfinance company have landed the Government in further trouble.