Ranchi, April 5: In a setback to CBI investigations into the multi-crore assets scam in the state, Jharkhand High Court today granted bail to Madhu Koda, who has been in judicial custody since November 2009 for gross misuse of office.

The former chief minister will, however, not be physically released from jail with two more sub-cases — one of money laundering being probed by the Enforcement Directorate (ED) and another of rural electrification scam lodged by the vigilance bureau (being probed by CBI) — still pending in a lower court.

Arguing for Koda, his advocate Biswajit Mukherjee told the high court that the jailed Singhbhum MP had been falsely implicated in the case at the behest of the investigating agency.

He said the CBI was merely blocking Koda’s release on the pretext that investigations were on in other countries in the assets case.

Mukherjee further insisted that the allegation against Koda that he had invested $17 lakh in Liberia was baseless. Preliminary probe has revealed that Koda just owned an acre of land valued at Rs 1.5 lakh, he said. The property has already been seized by ED.

The lawyer argued that another charge against Koda that he had accepted Rs 13 crore from one M/s Core Steel Limited to facilitate mining lease in Jharkhand was equally unwarranted.

Mukherjee contended that the money was given to one Sanjay Choudhary and businessman Binod Sinha and a sum of Rs 5.35 crore was also refunded to the company.

“It hasn’t been proved during investigations that the money taken by the duo was given to Koda or that Koda ever demanded money. Besides, M/s Core Steel was not granted a mining lease. So, there is no question of illegal gratification here,” the counsel said.

CBI advocate Mokhtar Khan argued that as many as 44 MoUs were signed by the state government when Koda was the mines minister and, subsequently, the chief minister. He also said that the case involved national and international ramifications and investigations were going on in the country and abroad.

Mukherjee countered Khan, saying that probe had not proved that kickbacks were paid to Koda by any company that had signed an MoU with the government.

The counsel also said that the former chief minister had been in jail for two years and should be given a breather.

The court observed that Koda’s case was similar to that of former minister Kamlesh Singh, also an accused in the assets case but granted bail earlier. Considering the parity in both cases, it ordered that Koda too be released on bail.