EOW to probe into scam by former minister

Bhopal, Sep 2 (UNI) The Madhya Pradesh Government has decided to get so-called scam worth crores of rupees involving former minister Narendra Nahata probed by the state Economic Offences Wing (EOW).

The scam is related to transferring of a government-controlled institute to a private trust related to the former minister.

This is lilkely to have a widespread political repurcussion damaging the reputation of the Congress particularly in Mandsaur especially in view of the assembly elections next year.

Official sources said today the Mandsaur Institute of Technology (MIT) was set up on government land in Mandsaur in 1996 by the Madhya Pradesh Society for Engineering Education (MPSEE) during the previous Congress regime.

The government had provided Rs 3.5 crore for setting up the institute.

Various alleged irregularities in registration of institute began in 1998 with subsequent changes being effected in 1998 and 2002. The institute was converted into a private institute in 2003 with the whole property being transferred to a private trust Nahata Smriti Sansthan (NSS) illegally.

However, changes in registration did not bear signatures of the then Chairman or other government officials. Instead, it carried signatures of three people including Mr Nahata and his brother Mr Surendra Nahata.

The letter regarding bifurcation of the MPSEE was released on September 12, 2003, but was taken away by employees of the NSS.

Sources said the Registrar Firms and Society had directed to return the government land and property to the government. However, it was not complied with. The matter came to light when a photocopy of the letter was provided by a complainant. Later, a show cause notice was issued by the Mandsaur Collector.

The government had provided 30-acre land in advance for setting up the institute. Though the institute came up on 15 acres, remaining land was also transferred by furnishing false information.

Besides, the institute had reportedly received lakhs of rupees as grant from the Centre.

The institute had all government officials at the time of inception. The institute had refunded Rs 3.5 core to government after collecting fee from students besides expanding its facilities and buildings. During this period, additional land worth Rs 7.5 crore was purchased and property worth Rs 5 crore was built.

UNI