Madhya Pradesh EOW issues notice to Digvijay Singh in Rs 714 Crore ICD Scam

Madhya Pradesh state’s economic offences wing (EOW) on Wednesday issued a notice to congress leader Digvijaya Singh in connection with the alleged Rs 714 crore loan scam under the Inter-Corporate Deposits (ICD) scheme of the MP State Industrial Development Corporation (MPSIDC). FIR relating to this scam was registered in 2004.

“The entire scam took place in his (Digvijaya Singh’s) regime. As many as Rs 500 crore were borrowed from different financial institutions and disbursed to private companies under stark defiance of set norms. Being a CM he must be in know of such a huge financial transaction. We have sought his explanations on various points,” said an EOW officer wishing anonymity.

Loans worth Rs 714 crore were allegedly advanced to companies by MPSIDC, most with dubious credentials, under the scheme started by the corporation in mid-1990s. As most beneficiaries defaulted, the scheme came to be known as ‘ICD scam’ and the outstanding amount, including interest, has risen close to Rs 2,200 crore.

EOW had registered FIR against 44 companies and 84 persons, including a senior IAS officer in 2005, other government officials and defaulters.

Nineteen companies and seven government officials including an IAS officer and two former ministers have already been charge-sheeted in the case.

While Singh could not be contacted for his version, state’s Congress spokesperson K K Mishra said that the agency had been working under influence of state government.

“EOW should be disbanded and policemen working in his agency should be utilised for improving the traffic system. I had lodged a complaint against five IPS and IAS officers who had engulfed an Rs 100 crore worth government land under the guise of starting a medical college in 2011, but till date not a single paper has moved. This agency has become a puppet of MPCM,” Mishra said adding he would be moving court against the agency.

This is the second time that EOW has got the former chief minister directly under its probe ambit.

In July EOW had questioned Digvijaya Singh for nearly three hours in connection with an FIR registered against him and the former technical education minister Raja Pateria for alleged misuse of their official position and giving undue favours to a private institute.

Meanwhile, the EOW has sent a report to the DoPT seeking sanction to prosecute additional chief secretary Sudhi Ranjan Mohanty for his alleged role in the scam. Mohanty had been fighting a legal battle with agency in court citing action against him as uncalled for.

During one of the previous hearings a HC double bench had also pulled up EOW over non-compliance of Supreme Court directives for a fresh probe into charges against him.
Mohanty, 56, was also named as an accused in the multi-crore ICD scam that rocked the Digvijaya Singh government in 2003.