Koda scam may be handed over to CBI

Jharkhand is likely to hand over investigation in the Rs 2,500
crore money laundering scam involving former chief minister Madhu Koda to the Central
Bureau of Investigation (CBI), an official source said on Monday.

The state government wrote to CBI last month asking it to take over the investigation.
"CBI has given its consent. The letter to CBI cited that the scam was spread over many
countries," the official source told IANS.

"Now the state government will take the decision. After taking legal opinion, it might ask the CBI to take over," the source said.

The scam surfaced last year when the income tax (IT) department and enforcement
directorate (ED) jointly raided 69 places in eight Indian cities October 30. Koda's houses in Ranchi and West Singhbhum districts were also raided.

The second raid was conducted by the IT department in February this year at nearly 63
places.

IT officials after the October raid had revealed that transactions of hundreds of crores of rupees through money laundering were made. According to reports, Koda and his
associates Vinod Sinha and Sanjay Chaudhary invested through money laundering
transactions in countries like Liberia, Dubai, Singapore, Thailand, Indonesia and
Sweden.

The ED also lodged a Prevention of Money Laundering Act (PMLA) case against Koda
and his associates.

Koda was arrested by the vigilance bureau and has been in jail since Nov 30 last year.

The Shibu Soren government in February this year had rejected the CBI probe demand.
In an affidavit to the Jharkhand High Court, it said there was no need to hand over
investigation to the CBI as the vigilance bureau had already filed charges against Koda.

The CBI probe demand gained momentum after President's Rule was imposed in
Jharkhand June 1.

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