Bhubaneswar, Oct. 27: Thousands of students and employees of private educational institutions in the state today staged a demonstration at Lower PMG describing the arrest of Sum hospital owner Manoj Ranjan Nayak as illegal and demanded his unconditional release.

Nayak is also the trustee of the Siksha 'O' Anusandhan University, which, among others, runs a renowned engineering institute in Bhubaneswar.

As announced yesterday, around 1,000 institutions in the state remained closed today. Protesters under the banner of Odisha Private Engineering College Association (OPECA), Odisha Private Engineering Schools Association, Odisha ITI Association, Odisha Management Colleges Association, Odisha Pharmaceuticals Colleges' Association and Odisha Private Medical and Dental Colleges' Association today submitted a memorandum to chief minister Naveen Patnaik and demanded withdrawal of the case against Nayak and other trustees of the trust.

"We also demand stringent action against the enforcement and regulatory authorities and 15 lakh government compensation for the deceased. Of the 540 private and government clinical establishments in the twin cities of Cuttack and Bhubaneswar, only four have valid fire clearance. So, why did the government take action against Nayak alone?" asked OPECA secretary Binod Dash.

As many as 25 patients died in the fire that broke out at the hospital on October 17.

In a related development, the hearing of Nayak's bail plea was concluded today at a local court in Bhubaneswar. However, the court reserved decision on the bail plea. The hearing was conducted today after the police submitted the case diary and post-mortem report of the deceased.

"We today argued that Nayak was not responsible for the incident as he was not directly responsible for the mishap. He had very little role in the hospital, which is running under the guidelines of University Grants Commission," said defence counsel S.N. Das.

The police today summoned Nayak's wife and sister to appear before them within seven days for further investigation.

The police said both Nayak's wife and sister were also the trustees of the trust, which was managing the hospital. Both of them have moved Orissa High Court seeking anticipatory bail.

The state government is conducting a fire safety audit of government hospitals, medical colleges and cancer hospitals across the state.

"A third party will conduct the audit. Electrical inspectors of energy department will submit a detailed report within one month. After this, the works department will take necessary steps," said works department secretary Nalini Pradhan.