Bhubaneswar: In a major blow to the newly formed political outfit Odisha Jana Morcha (OJM), bail plea of its secretary general Jagneswar Babu was rejected by additional special judge (vigilance) here on Monday.
Earlier in the day, the judge after concluding the hearing had reserved the verdict.
On May 1, Jagneswar was arrested by vigilance sleuths on charges of financial irregularities involving disbursement of Rs 36.18 crore loan to Bijayananda Co-operative Sugar Mills in Bolangir as president of the Odisha State Cooperative Bank (OSCB).
During enquiry by vigilance, it was also found that Jagneswar, who was the president of OSCB from 2009 to 201,1 illegally sanctioned loan without adequate security and in blatant violation of NABARD and bank guidelines.
The vigilance department has registered cases of fraud and corruption against Jagneswar.
Meanwhile attending a public rally in Rourkela on Monday, OJM president and Rajya Sabha MP Pyarimohan feared that he could be arrested anytime by the state police.
“I apprehend my arrest anytime on the ground that they (police) think I have links with Maoists,” Mohapatra said.
“They (the government) are trying to malign OJM,” added Mohapatra.