Imphal, Sep 6 (IANS): Police have started inquiry into the Rs 185.79 crore scam in the Manipur Development Society (MDS) and have recovered files relating to the scam.

Ghanashyam Sharma -- sub-divisional police officer who conducted raids for two days in the posh residence of Yambem Ningthem, former project officer and now officer on special duty of MDS -- will conduct more raids in the houses of other accused persons.

On September 1, FIRs relating to the scam were registered against former Chief Minister and now Opposition leader Okram Ibobi Singh, three former Chief Secretaries, P.C. Lawmkunga, D.S. Poonia and O. Nabakishore and MDS administrative officer S. Ranjit.

The district and sessions court has rejected the anticipatory bail applications of Nignthem and Ranjit. The remaining ones are yet to apply for anticipatory bails. Nabakishore and Lawmkunga have clarified that they had not done anything wrong.

Rs 185.79 crore was sanctioned for providing infrastructures for water sports in the Loktak lake. It was allegedly misappropriated.

In its interim report, the state vigilance commission has stated that some files relating to the scam were recovered from the house of Ningthem located near Imphal.

Opposition leader Ibobi has been out of station.

Opposition Congress says that it is a political vendetta. But Chief Minister N. Biren Singh said: "Misappropriation should not be politicised. Registration of FIRs does not indict anyone. Police are merely investigating the complaint about the misappropriation. Those who had done wrong will have to pay according to law."

The government has already suspended some officials in connection with other scams involving crores of rupees.

Biren told IANS that his BJP party had promised to usher in a corruption-free government and unearth the institutionalised corruption and "all sections of people are happy with the government actions".