The Hindu : Andhra Pradesh News : Accused in housing scam surrenders

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Wednesday, Jun 27, 2007
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Accused in housing scam surrenders

Staff Reporter

Sequel to rejection of petition seeking anticipatory bail

Court remands him to judicial custody till July 9
The accused joins ORHDC in 1995

BHUBANESWAR: One of the prime accused in multi-crore Orissa Rural Housing Development Corporation (ORHDC) scam, Pradip Kumar Rout, on Tuesday surrendered in a local court. His surrender before Special Chief Judicial Magistrate (vigilance) Santanu Kumar Das came following rejection of his petition seeking anticipatory bail by the Orissa High Court in the case.

The vigilance court, however, denied him bail and remanded him to judicial custody till July 9. Earlier, Rout worked as an ad hoc accountant with ORHDC. The Vigilance Department had filed five cases against Rout in 2006. He was arrested on July 24 last year but was released on bail on August 25. Since then, he had been absconding despite court’s order to appear in person in connection with the cases.

As he continued to elude arrest, the vigilance court declared him a ‘proclaimed offender’ and ordered the anti-corruption department to attach two properties owned by Rout in Bhubaneswar.

Property attached

The property included a double-storeyed building at Niladri Vihiar and Nilachal Hospital (P) Limited at Kharavela Nagar in Bhubaneswar which were said to be worth several crores of rupees. The Vigilance Department is yet to assess other properties, including his bank accounts.

Rout, a native of Agira village under Keonjhar district, joined the ORHDC with a consolidated monthly salary of Rs. 5,000 in 1995. The department also stumbled upon properties worth crores of rupees owned by another accused Chittaranjan Mallick, who joined the corporation along with Rout.

After the 1999 super cyclone, the corporation had allegedly started extending loans to private builders and individuals without adhering to guidelines. A senior IAS officer, who was heading the ORHDC, was also said to be involved in the embezzlement cases. The senior bureaucrat had spent several months in jail.

After the Vigilance Department swung into action, the corruption tangle started getting unlocked. So far, the department has instituted 24 cases relating to corruption in the ORHDC. The total amount of loss to the corporation has not yet been assessed since the investigation has not been completed. The amount involved in these 24 cases is about Rs. 14.96 crores.

The anti-corruption squad so far has seized properties of 17 loanees who have defaulted under Securitisation Act. Similarly, out of 25 private builders who availed loans, 13 defaulted in paying back loans.

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