ED searches properties linked to BJD MLA’s dead brother in Rs 231cr bank fraud | Bhubaneswar News
Bhubaneswar: The ED on Wednesday carried out simultaneous searches at properties associated with Khirod Chandra Mallik, the deceased brother of BJD MLA and opposition chief whip Pramila Mallik, on charges of defrauding several banks to the tune of Rs 231 crore in 2010.
ED officials carried out searches at Khirod’s residence and office premises in Sambalpur, along with a property in Delhi.
Prior to his death due to heart attack in Sept, Khirod had secured term loans totalling Rs 231 crore from various nationalised banks in Odisha and other states through his microfinance organisation, Bharat Integrated Social Welfare Agency (BISWA). The loans were obtained for the purpose of lending to self-help groups (SHGs).
According to ED sources, Khirod and his organisation allegedly violated terms and conditions of the loan agreements, and embezzled the money for personal gains.
“The loan amount was not used for the purpose for which it was sanctioned and was misused by furnishing fabricated utilisation certificates,” an ED source said.
The CBI had in 2020 registered multiple fraud cases against Khirod and his organisation, following which the ED initiated a parallel investigation in 2021, related to money laundering.
When contacted, BISWA functionaries declined to speak. Asked about Wednesday’s developments, Pramila told TOI, “I do not want to comment on the ED searches and their allegations.”
Khirod had come under the scanner of the state police in the past. The state crime branch’s economic offences wing (EOW) had apprehended Khirod on Oct 27, 2014 for allegedly duping investors of Rs 10 crore. According to EOW, BISWA had unlawfully collected deposits from numerous individuals, akin to a ponzi scheme, between 2006 and 2012, and misappropriated the funds. The RBI had issued a show-cause notice to Khirod, and asked the state finance department to initiate action against him.
On May 24, 2012, the commissionerate police had arrested him for his suspected involvement in an Oct 2011 acid attack incident on an individual in Mancheswar area of Bhubaneswar.
