CBI today arrested Biju Janata Dal Mayurbhanj MP Ramchandra Hansda and two former MLAs Subarna Naiak and Hitesh Bagarti for their alleged links with multi-crore chit fund scam in Odisha. CBI sources said the three have been arrested by the special investigating team of CBI on charge of criminal conspiracy, cheating and diversion of funds.

The three leaders were former directors of Naba Diganta Capital Services Limited, a ponzi group. The CBI has been probing the activities of 44 ponzi companies in the state which allegedly duped thousands of investors deposits.

Earlier, during a raid on Hansda's house in Mayurbhanj district in July, the agency had recovered 28 lakh rupees. The arrest of Hansda came as a fresh embarrassment for the ruling BJD coming close on the heels of the arrest of BJD MLA and former government chief whip Prabhat Tripathy by CBI on October 31.

Meanwhile, BJD president and Chief Minister Naveen Patnaik today suspended party MP Ramchandra Hansda and former party MLA Subarna Naik after they were arrested by the CBI on charge of criminal conspiracy in the multi-crore chitfund scam in Odisha. The party's action came barely two hours after the arrestof the duo along with Hitesh Kumar Bagarti, a former BJP MLA in the ponzi scam case.

While BJD placed its party MP and former MLA under suspension, the BJP on its part claimed that Bagarti was no more a member of the party. State BJP spokesman Sajan Sharma said that BJP has not renewed the membership of Bagarti. Earlier on October 31, the BJD had suspended its Banki MLA Pravat Tripathy from the party after he was arrested for his alleged links with Artha Tatwa Group, another ponzi company accused of duping thousands of investors.