Bihar NGO scam: Key accused dies of illness; RJD demands SC-monitored CBI probe into scam

A key arrested accused in the alleged multi-crore NGO fraud in Bihar's Bhagalpur died of illness, police said today, while the opposition RJD questioned the circumstances surrounding his death and demanded a Supreme Court-monitored CBI probe into the "scam".

As the opposition stepped up attack on him, Chief Minister Nitish Kumar, who has already recommended a probe by the CBI in the scam, asserted that the "culprits will be traced even from 'patal' (beneath the earth)" and nobody will be spared.

Mahesh Mandal (57), nazir (an employee dealing with treasury) of Welfare Department, who was under arrest in the scam, died in course of treatment in a hospital late last night in Bhagalpur, Senior Superintendent of Police, Bhagalpur, Manoj Kumar said.

His both kidneys were damaged and he was surviving on dialysis, he said.

Mandal was arrested on Sunday in connection with the NGO scam in which over Rs 950 crore of government money was allegedly fraudulently transferred to a NGO "Srijan" working for women's cause in Bhagalpur for years in alleged connivance with government employees and banks.

After his condition deteriorated in Camp jail of Bhagalpur, Mandal was taken to a hospital where he died late last night, the SSP said.

Leader of Opposition Tejaswi Prasad Yadav raised questions on the circumstances surrounding Mandal's death.

"He was killed by people in the government to bury truth of the scam," Tejaswi Yadav, flanked by his brother and former minister Tej Pratap Yadav, alleged outside the state assembly.

Tejaswi Yadav alleged that the NGO scam was "even bigger than Vyapam in Madhya Pradesh in which custodians of government money themselves facilitated loot of treasury".

His mother Rabri Devi, who is leader of opposition in the state Legislative Council, demanded resignation of Chief Minister Nitish Kumar and Deputy Chief Minister Sushil Kumar Modi for "a fair probe into the scam".

Talking to reporters outside the Legislative Council, she also demanded that a CBI probe into the case be carried under the supervision of the Supreme Court.

Meanwhile, a letter purportedly written by an employee of the state cooperative department in Bhagalpur in 2002 surfaced today. In the letter written to head office, the employee had urged the department to probe some alleged irregularities, which are no linked to the NGO scam.

Instead of taking the letter seriously, the employee was reprimanded and was denied two increments, official sources claimed.

When Tejaswi Yadav's reaction was sought on this matter, he told reporters "it should be probed".

Yadav's RJD was in power with Congress in Bihar during 2002 under the Chief Ministership of Rabri Devi.

Chief Minister Nitish Kumar today said it was "eye opening" that a scam of this dimension did not come into notice till now.

He noted that a CBI probe has been recommended into the case and nobody would be spared.

"Unmindful of how mighty a person is, nobody would be spared in the inquiry into the scam and lawful punishment would be certainly given," he told reporters in his Vidhan Sabha chamber.

Kumar, who brought the scam in public domain for the first time on August 8 last while speaking at an event on Worlds Earth day, said "culprits would be traced even from 'patal' (below the earth) and government money swindled would be reclaimed at any cost."