Bhubaneswar, Nov 4 (IANS): Ruling Biju Janata Dal (BJD) president and Odisha Chief Minister Naveen Patnaik Tuesday suspended party MP from Mayurbhanj Ramchandra Hansdah and former legislator Subarna Naik, who were arrested by the CBI for their alleged involvement in Nabadiganta Capital Financial Services chit fund firm.

Earlier Tuesday, the CBI arrested Hansdah, Naik and former BJP MLA Hitesh Bagartti on charges of criminal conspiracy, cheating and diversion of funds. They were directors in the chit fund company, which cheated thousands of depositors in the state.

"BJD president Naveen Patnaik has suspended MP Ramchandra Hansdah and ex-MLA Subarna Naik from the party," said a press release of the party.

The BJD had also suspended Banki legislator Pravat Tripathy, who was arrested by the central investigating agency for his alleged link with Artha Tatwa Group, another home grown chit fund company in the state.

Meanwhile, the Odisha BJP has also distanced itself from the party's former MLA Bagartti.

Senior BJP leader Bijay Mohapatra said Bagartti was no more a member of the BJP.

Mohapatra, however, said that he was director of the chit fund company while he was a BJP MLA.

Replying to queries of media, Patnaik, who is in New Delhi, said the party would take appropriate action against the leaders involved in the chit fund scam.

He also said that he has no information about involvement of ministers in the scam.

Patnaik is on a six-day trip to the national capital to meet Finance Minister Arun Jaitley to seek financial assistance for 'Hudhud' cyclone-affected people in the state.