Khurda: The District and Sessions court here today rejected the bail plea of Subarna Nayak, former BJD MLA from Keonjhar, who was arrested in one of the chit fund frauds.
Nayak was chargesheeted by the Central Bureau of Investigation (CBI) in the fraud case involving Nabadiganta Financial Services, a chit fund company which is alleged to have duped investors of around Rs 9 crore.
The CBI had arrested six persons, including BJD MP from Mayurbhanj Ramchandra Hansada and former BJP MLA from Nuapada Hitesh Bagarti, who was later expelled from the party.
The Orissa High Court had, however, granted conditional bail to Pradeep Patnaik, one of the directors of Nabadiganta, two days ago.
According to reports, the company had collected about Rs 15 crore from various districts between 2011 and 2013. Though it refunded Rs 7.3 crore to some depositors, the rest of the amount has not been returned to scores of others.