Samajwadi Party demands CBI probe into loan waiver to IMFA

Bhubaneswar: The Odisha state committee of Samajwadi Party on Monday demanded a CBI probe alleging a scam behind Rs 2300 crore loan waiver to Indian Metals & Ferro Alloys Limited (IMFA).

Members of Samajwadi Party led by State President Rabi Behera staged demonstration before the CBI office in Bhubaneswar and submitted a memorandum to the investigation agency's local SP alleging IMFA Vice Chairman and MP Baijayant Panda of using his political links to secure the loan waiver.

Panda got the Rs 2300 crore loan waived from 10 banks including Rs 83.87 crore from Punjab National Bank, the party's memorandum stated.

"The Vice Chairman of IMFA misused his post and got a loan waiver of Rs 83.87 crore only from Punjab National Bank. Odisha unit of Samajwadi Party took to streets today and submitted a memorandum addressed to the National Director of CBI to conduct a probe within 90 days and provide justice to the people of Odisha and country," said Samajwadi Party's State President Rabi Behera.

On the other hand, IMFA clarified that the loan restructuring of former Indian Charge Chrome Ltd (ICCL) carried out in 2003 was similar to several companies in the iron and steel sector including Jindal, Essar and few others. It is worthwhile to mention that ICCL had merged with IMFA in 2006.

A PIL filed in 2007 on this issue was dismissed by the Orissa High Court, added IMFA.