An official posted at the District Industries Centre (DIC) in South Dinajpur district has been accused of taking money from unemployed youths who had applied for loans and subsidies provided under self-employment schemes of the state and the Centre.

On Monday, around 40 such applicants filed a complaint to Ayesha Rani A, the district magistrate, alleging that Prakash Bag, the DIC manager, had taken money from them while promising approval of loans.

“I had planned to set up a spice making unit and the officer took Rs 1.30 lakh from me in two installments and Rs 2,500 for filing the application form. We didn’t get the loan and he, too, didn’t return the money he had taken from us,” said Moumita Chakraborty, one of the complainants.

According to them, Bag has taken around Rs 7 lakh in all in varying sums from 40-odd applicants.

“He returned around Rs 2.64 lakh to the applicants but has not paid the remaining Rs 4.48 lakh. That is why we have filed the complaint with the district magistrate. Also, none of us have got our loans approved,” said Aparna Sarkar, another complainant.

In the districts, the DICs, which function under the department of micro, small and medium enterprises and textiles, work to provide loans and other assistance to prospective entrepreneurs.

Sources said the complainants had applied for loans provided under the Prime Minister’s Employment Generation Programme and Karmasathi, which are central and state schemes, respectively.

Bag denied the charges. “Some people are conspiring against me and trying to implicate me in a false case. I have already submitted a report to the district magistrate and am ready to face any consequence if the allegation against me is proved,” he said.

The district magistrate, however, has ordered an inquiry into the matter.

“A senior administrative officer has been asked to probe the complaint that has been filed with us. We are gathering details of the case,” she said.