BHUBANESWAR: In its most high-profile arrest in the multi-hundred crore chit fund scam yet, the CBI on Monday swung into action and held Odisha’s former Advocate General Ashok Mohanty in connection with a land deal with Artha Tatwa Group chief Pradeep Sethi.
Mohanty was picked up from Cuttack by a CBI team, which quizzed him afresh before taking him into custody. He was later sent for medical examination and produced before a special CBI court.
The former AG’s arrest, which came 10 days after he was questioned, assumed importance as he had claimed that he had no knowledge of Sethi’s antecedents while buying the house from him in Cuttack’s Bidanasi area last year. He had also asserted that the transaction was done in a transparent way. He claimed that all legal documents were furnished before the probe agency. The arrest has now put a question mark on the land deal that Sethi has claimed was a “gift”, but was termed an “outright purchase” by Mohanty. Sethi had purchased the property from a former judge of the Orissa High Court.
The CBI sources said the former AG could not satisfactorily explain the timing of the purchase and the payment of Rs 1.01 crore for the building spread over 4,000 sq ft in Sector 11 of Markat Nagar, CDA. Incidentally, Sethi had purchased the property from the former HC judge for Rs 1 crore and sold it off to Mohanty with an enhancement of just Rs 1 lakh.
The former AG insisted that he is not guilty of any irregularity or incriminating activity. “Truth will come out. Have faith in me,” he said after being formally arrested. Mohanty had taken possession of the property on March 22 last year. On February 1, Sethi reportedly appeared in person before the court of the Cuttack Sub-collector seeking grant of permission to sell the property to Mohanty. Seven days later on February 8, both Mohanty and Sethi allegedly appeared before the CDA for finalisation of the transfer of ownership of the building.
What is believed to have gone against Mohanty in the land deal is the fact that Sethi was then wanted by police in multiple cases as the AT Group scam had surfaced. In October 2012, cases were registered against AT Group at Balasore Town Police Station. Later, a case was registered with Sahadev Khunta Police Station in the same district. A day before both Mohanty and Sethi reportedly appeared before the Cuttack Sub-collector, another case was registered at Kharavela Nagar Police Station here in connection with chit fund scam. Sethi was absconding from the police during this time, but showed up to facilitate the land transfer process. The issue then generated political heat with BJP-backed Independent MLA Pratap Sarangi raking it up. Mohanty’s resignation from the position of AG was accepted by the state Government a day before he was quizzed by the CBI.