Bhubaneswar, Jan. 1: Deputy superintendent of police (DSP) Pramod Panda, who was arrested by the Central Bureau of Investigation (CBI) for his alleged links with money deposit collection company Artha Tatwa (AT) Group, was today suspended from his service.

The central agency arrested Panda on December 19 on chargesof larger conspiracy and taking undue financial benefits from the group.

The state government today suspended the police officer with retrospective effect from the day he was arrested. Though speculation was rife regarding his suspension, the delay in the government taking this step had raised many eyebrows.

Social activists had said a government employee was supposed to be suspended within 48 hours of his or her arrest in a criminal case.

They have also alleged that powerfulcircles in the state police are trying to shield the official.

Panda, the first police official to be arrested in connection with money laundering by deposit collection companies, is lodged in Jharapada jail after the court of special chief judicial magistrate, CBI, rejected his bail plea.

It was alleged that money had been allegedly diverted from the AT Group's account of one ofPanda's relatives. OnNovember 18, the CBI had raidedPanda's residence in Bhadrak and seized incriminating documents, including the charge sheet filed against JagabandhuPanda, one of the former directors of the group.

In 2009-10,Panda, who was then working with the crime branch, was attached to the Calcutta office of the CBI as a liaison officer during the interrogation of a ponzi firm case in Balasore - which involved Bollywood actor Naseer Khan.

Pandahad moved Orissa High Court, seeking an anticipatory bail apprehending hisarrest.

However, the court had rejected his anticipatory bail on December 15. Pandawas suspended in February last year for allegedly threatening a petitioner seeking CBI inquiry in money laundering scam by the ponzi firms. He was reinstated in June and posted in Nayagarh.