Bhubaneswar, Dec. 15: The managing director of money deposit and collection firm Micro Finance Ltd, Durga Prasad Mishra, who was arrested by the Central Bureau of Investigation (CBI) last night, was taken on six-day remand by the central investigating agency today.
Mishra's firm has allegedly collected Rs 500 crore fraudulently through its 10 sister companies. He was absconding since March. The investigating agency conducted raids in his office and residence on December 8.
The special chief judicial magistrate, CBI, after hearing the remand appeal of the investigating agency today granted it the custody of Mishra for six days. He will be produced before the court on December 20. Senior CBI counsel Kali Charan Mishra had moved a petition seeking a seven-day remand for the accused in the court. Mishra's advocate also filed a bail petition on health ground.
Mishra, who was arrested from Balasore, was taken to the Capital Hospital today for health check up before being taken to the court. He not only denied the allegations brought against him, but also claimed that the company was operating as per the guidelines of Reserve Bank of India and said he was ready to return the money to the depositors.
'There was no allegations against us in the last 30 years. Then how come we suddenly become defaulters,' said Mishra.
The company started operating in 1983 and in 1999, the RBI permitted it to run as a non-banking financial company. However, in 2006, RBI found irregularities in the functioning of the firm. Accordingly, in 2012, the apex bank reduced its ratings following which the company was allowed to provide loans but was not permitted to carry out deposit schemes. Later it was found that the firm was running as a deposit collection company.
Meanwhile, Mishra's son Kali Prasad was questioned by the CBI for an hour. He, however, refused to take any questions from the mediapersons after coming out of the office.
In another incident, a fire broke out in the Balasore office of deposit collection company Green Ray International Limited twice in last 24 hours. Residents allege that it is the handiwork of some anti-social elements to destroy evidence.
