Bhubaneswar, Aug. 22: A Jharkhanda Mukti Morcha (JMM) legislator of Orissa has been charged with unscrupulously disbursing loans to his own hotel in his capacity as president of a cooperative bank he once headed.

The state vigilance department yesterday lodged two separate cases against JMM legislator from Baripada intribal-dominated Mayurbhanj district Bimal Lochan Das for illegally sanctioning loans during his tenure as president of Baripada Urban Co-operative Bank.

Das who was president of Baripada Urban Co-operative Bank between 1993 and 1997 and again between 1997 and 2001 has been charged with enhancing the cash credit limit of his own hotel.

Before he became the president of the Bank, Das as proprietor and managing director of Ambika Hotel and Estates in Baripada had availed a cash loan of Rs 3.5lakh from Urban Co-operative Bank, Baripada.

After assuming the post of president, he reportedly enhanced the cash credit limit of his hotel to Rs 1.25 crore, without any additional collateral and prescribed shares of five per cent of the loan sanctioned. Das did not repay the loan. Vigilance officials who lodged the graft cases against Das said the sanctions were in violation of rules of the business and Bylaws of Section-20 of the Banking Regulation Act, 1949.

To facilitate the availability of the loan, Das is reported to have recruited his cronies . During his incumbency as president, he gave appointment to 13 bank assistants and six peons. It was done without the prior approval of the required authorities.