Digvijay Singh who is known for his loose talks and silly comments, is now caught in a major 719 ICD Scam of State Industrial Development Corporation which happened during his tenure as Chief Minister.
The Economic Offenses Wing has ordered probe against Digvijay Singh and he will be soon questioned on his alleged role of ICD scam.
ICD is described as the inter corporate deposits, its a short loan which is provided by one corporation having surplus money to another corporation or a company which is in need. In the year 1998, the State Industrial Development Corporation which is a public sector granted loan of 663 crores to few selected companies with an interest of 18-21%. But gradually these companies which took benefit from the State Industrial Development Corporation never paid the interest or the actual amount back. The interest rate has now accumulated and is around 719 crores.
But the interesting story here is, unlike the definition that ICD are companies have surplus cash, to loan other companies, the State Industrial Development Corporation did not have money and issued bonds which were bought by banks like IDBI, Maharashtra dist. Co-operative banks and later started pressurizing the State Industrial Development Corporation to repay the loans.
Since the companies which got loans from State Industrial Development Corporation did not repay the loans, the State Industrial Development Corporation was bankrupt. This is a typical case of crony capitalism….in which the bonds raised by public money were given to those selected companies without any guarantee of repayment.
So ultimately those companies which are either favoured by the politicians or belong to politicians are hugely benefited and the government companies like State Industrial Development Corporation will collapse. The major companies which benefited by this scam were Enbee Group, Alpine Industries, Ishar Group, Jagdish and Ajay Arora of the Som Group and G.K. Rathi and Dilip K. Rathi.
Robert Vadra, son in law of Sonia Gandhi is also said to have followed same procedure to raise the shares of his company. In a span of 2-3 years his company’s share value had increased from 50 crores to 600 crores. In a classic case, many companies had bought his shares without any guarantee of repayment!
As said earlier, Digvijay Singh is found to have links with Alpine Industry’s Jamboo Bhandari. He is also said to be family friends with Anoop Bishnoi, son-in-law of the former Haryana chief minister Bhajan Lal.
In 2015 as well, Digvijay Singh was questioned Economic Offense Wing, for his alleged role in Assembly Recruitment Scam in which the government had decided to waive off the penalty imposed on RKDF engineering college in 2001-02.