Ranchi, Nov 8 (IANS) Former Jharkhand chief minister Madhu Koda, who faces arrest on charges of laundering Rs.2,500 crore, was Sunday discharged from a hospital here and maintained that he had been falsely implicated in the case.

Koda, who was admitted Nov 3 after complaining of severe stomach ache, left the hospital around 11.45 a.m.

Heavy security arrangements were in place as hundreds of Koda supporters had gathered at the Apollo hospital.

Koda was taken to his official residence in Ranchi which was partly sealed Nov 5. The Income Tax (IT) and the Enforcement Directorate (ED) officials also reached there to interrogate him.

Pleading his innocence, Koda said: "Charges against me are false."

When asked about the documents and proof collected by IT from his house, he said: "Ask them (the IT department)."

Koda said he knew Vinod Sinha, the alleged kingpin of the money laundering scam.

"I know Vinod Sinha but there is no business involvement with him," he said.

Responding to the ED summoning him to New Delhi Nov 11, he said: "I will respond to the ED summons."

According to sources, the IT department will interrogate Koda first and the ED will be be kept informed.

"We have come across documents and information related to investment in foreign countries and money sent through hawala. Koda will be interrogated to know about foreign investments and the hawala transactions and how the network was working," said a source in the IT department.

Meanwhile, IT officials have started scrutinizing the mining deals inked by Koda when he was in power.

Koda was chief minister - between September 2006 and August 2008 and had kept the mines and geology department with himself. He was also mines and geology minister between March 2005 and September 2006 when Arjun Munda was chief minister.

"The special commissioner Ajay Kumar is scrutinizing the mines case," said Ajit Kumar Srivastav, additional director of IT.

According to sources, the IT department has sought details of mines, recommendation of lease, survey licences and others.

Jharkhand Mines and Geology Director B.B. Singh has been asked to submit the details of lease recommendations made and granted during the Koda regime.

On Oct 9, the ED filed a case under the Prevention of Money Laundering Act (PMLA) against Koda, three more former ministers as well as his associates Sinha and Sanjay Chaudhary. Vikas Sinha, brother of Sinha, was Saturday sent to ED custody for 10 days.

According to sources, Vikas has admitted to sending Rs.40 crore abroad for Koda.