The new chief minister’s association with a businessman-friend, Binod Sinha, may remain a mystery, but his supporters gathered at the Morabadi grounds to cheer their leader during the swearing-in ceremony. Picture by Prashant Mitra

Chaibasa/Jamshedpur, Sept. 18: Can Madhu Koda come out of the shadows of a businessman-friend, Binod Sinha, is a question that is being increasingly asked in political circles.

Sinha, about the same age as Koda, has been conspicuous by his presence in the state capital, hovering around the new chief minister.

Sinha is acknowledged to be close to Koda, who, as minister, would often ask visitors to speak to “Binodji” and sort out their problems.

The duo often travels together, both here and abroad, and political circles are abuzz with the rising importance of Sinha, whose fortune has soared after Koda became minister in the state.

But most people in Chaibasa, who know Sinha, do not believe that Sinha would “officially” become a part of the chief minister’s secretariat, unlike computer professional Tapas Mallik who functioned as the personal secretary to outgoing chief minister Arjun Munda.

But Sinha, they agree, could well emerge as the power behind the throne.

Sinha was a small-time businessman trading in electrical equipment in Chaibasa. But he has expanded fast during the last few years, getting the dealership of a tractor-manufacturing company, setting up an iron ore refining plant at Noamundi and is also said to have invested in a steel manufacturing company in Malyasia.

Envious members of the business community in Chaibasa speak in hushed tones of the rags-to-riches story of Sinha. During the last few years, they claim, Sinha has travelled abroad over 20 times. “Earlier, he was a middle-class man. But now he is a crorepati. He has business of iron ore crushing, transport, agency of Sonalika tractor, a family business dealing in electric equipment and also has business in Malaysia,” said a prominent businessman of Chaibasa.

One reason why Sinha is unlikely to acquire an official designation is the recent controversy surrounding a case of fraud lodged against his tractor agency by the manager of a nationalised bank. The FIR accused the agency of producing fake papers to get loans sanctioned for over 50 tractors. While the beneficiaries were all different, the documents submitted about ownership of land were found to be related to the same plot of land.

Sinha and two of his brothers secured bail from the local civil court.

Police officials confessed that they failed to collect enough evidence to suggest involvement of the three brothers. They also blame the bank for not only perpetrating the fraud but also for the failure of their field officers to verify the authenticity of the loan applications and verify the identity of beneficiaries. “According to the records, the prime accused in the matter should have been the bank management, who granted loans, and the beneficiaries who received the loan and also grants from the state government,” claimed police officials in Kolhan.

Sinha has his house in New Colony locality in Nimdih area of Chaibasa sadar police station. His family’s electrical good business still exists near the main post office in the city. Concerned residents of Chaibasa said no four-wheelers were available for hire on Sunday and Monday as almost all have been booked by Sinha and his men to travel to Ranchi when Koda will be taking oath as chief minister.

Contacted in Chaibasa, Sinha accepted he was a childhood friend of Koda, but denied any political relationship. “Koda and I studied at Zila School, Chaibasa. He is my close friend but we do not have any political connections,” Sinha said.

He stressed that it would be unfair to attribute his business boom to his proximity to the new chief minister.

Sinha denied he has any business in Malaysia or for that matter any business partnership with Koda. Asked about the case pertaining to the fraud charge, Sinha maintained the bank was at fault and that he has moved to the high court against its management.