By Bizodisha Bureau, Bhubaneswar, February 19, 2018: The state committee of Samajwadi Party in Odisha on Monday demanded a CBI probe into alleged 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 here and submitted a memorandum to the investigation agency’s superintendent of police (SP) accused IMFA Group vice chairman and Lok Sabha MP from Kendrapada, Baijayant Panda of using his political links to secure the loan waiver.

In the ICCL – then a sister company’s annual report for 1996-97, the auditors categorized the company as “a sick industrial company within the meaning of clause (O) of sub-section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985, Behera said.

“Again, during the five years ended 2002-03, ICCL’s losses crossed Rs 2,600 crore, which was more than 45 times its paid-up capital. There was no reason at all for IDBI to accept guarantee for Rs 297 crore from ICCL associate Indian Metal and Ferro Alloys (IMFA), whose net worth was one-thirteenth of this sum in 2000-01”, the memorandum added.

As per IMFA’s books of accounts, the total corporate guarantee for ICCL was Rs 2,915 crore on March 31, 2003 — 124 times IMFA’s net worth, Behera added. ICCL had merged with IMFA in 2006.

IMFA got 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.

Meanwhile, IMFA ruled out any favor from the Banks as 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.

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