Click to play videoNew Delhi: CNN-IBN on Tuesday unearthed a huge scam in Arunachal Pradesh, involving blatant misuse of development funds, amounting to over Rs 700 crore, under former chief minister Gegong Apang and present incumbent Dorjee Khandu.
The scams, unearthed at a time when China has been eyeing the state, have the potential of harming India's strategic interests.
Independent investigation by CNN-IBN has revealed that as chief minister of Arunachal Pradesh, Gegong Apang had signed letters instructing the Arunachal Pradesh Cooperative Apex Bank to give loans without guarantees and recommending increase in the borrowing limits in several cases.
These loans were never recovered and the cases resulted in a Rs 225-crore scam.
Dance Hills Enterprises, for instance, got a whopping credit extension from RS 2 lakh to Rs 150 lakh. Goapur Makcha, another firm, got its credit limits extended to Rs 16 crores.
Apang accepted making these recommendations. Speaking to CNN-IBN, he said: “As a public leader, it is our duty to make recommendations."
He claimed that it was a scam and officers and the governing body were responsible for it. "It should be inquired by an independent agency," he demanded.
"The CBI should verify the facts. If recommendations were made, then the loans should be recovered from the loanee. Drastic action should be taken against those responsible. I just made a recommendation, I have not done anything wrong," Apang claims.
Present Arunachal Chief Minister Dorjee Khandu said he has already revived the bank with help from the Union Government.
"We requested the Prime Minister, Finance Minister, the Deputy Chairman of Planning Commission, Montek Singh Ahluwalia, Power Minister Sushil Kumar Sindhe and Sonia Gandhi for the loans,” Khandu says.
Investigations showed that Apang was also involved in a Public Distribution System scam involving Rs 200 crore.
In fact, the State Vigilance Department submitted evidence of corruption against Apang and 40 top government officials to the Guwahati High Court. But it’s the investigating officer who is paying the price.
“They are all involved. Many relatives of ministers and MLAs are involved. We started our investigation properly and we were removed," former DIG of Arunachal Pradesh, R Yomcha, claims.
Apang is not alone, the incumbent CM Dorjee Khandu, too, has been found to be involved in corruption.
Khandu’s Corruption Index:
- 2003: Flood Relief Projects worth 100 Crores awarded to Family Members.
- 2004: Development Contracts worth 130 Crores to Family. No Tenders Invited.
- 2007: 300 Crores to Pvt Players for Hydro Power Projects. Norms Flouted.
As relief minister in 2003-04, Dorjee allegedly gave contracts worth Rs 100 crore to his own family members.
In 2004, he awarded development projects worth Rs 130 crore to firms owned by his son Pem Khandu, wife Rinchin Drema and nephew Jambey Tashi. His ministry didn't invite tenders for any of these contracts.
This year, the CM is alleged to have awarded contracts worth Rs 300 crore in various hydro-power projects to some private players flouting all norms and procedures.
"What I feel is that state police officer cannot investigate these cases, because they are suppressed and they are victimised. As per my experience, this should be investigated by an outside agency,” says Yomcha.
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