According to the reports, the Seashore Group of companies collected money from people from 2006. Such collections were done without the permission of the Reserve Bank of India and the Securities and Exchange Board of India (SEBI). The company had invested the collected money in several sectors.
Presently, the ED has started investigating into the old chit-fund cases, looking for political links in the Rs 578-crore scam. As a part of this, the ED grilled Das on Monday for the second time. The ED had quizzed him last Friday as well.
Also Read: Seashore chit fund scam: Charges framed against ex-Choudwar-Cuttack MLA Pravat Biswal
The ED has been interrogating Das because it is said that the ED is convinced that more assets of Das haven’t been attached as yet.
It is alleged that the people involved in several chit fund cases be it Seashore chit fund, AT chit fund or Rose Valley chit fund are now out on bail and are maintaining luxurious lives. Hence, they are now coming under the scanner of the ED. The agency is now reportedly quizzing them to find leads so that more assets can be attached. They have been summoned to depose before the ED in phases. The ED is learnt to be looking into their political links.
Notably, the ED had attached Seashore Group’s assets worth over Rs 150 crore under the Prevention of Money Laundering Act in December 2014. It had again attached the company’s properties worth Rs 84 crore in January 2015.
The central agency has seized bundles of currency notes worth Rs 1 crore in Rs 100, 200, and 500 denominations. Further raids are underway on the properties linked to Golden Land Developers Limited which is a Delhi-based company.
Officials of ED continued their search for the second day at the houses and other properties of the company’s director, manager, and employees. In Berhampur, the raid was conducted in Gosaninuagaon, Shakti Nagar Lanjipalli and Digapahandi. The raid teams have seized several documents and bank passbooks.
Worth mentioning, the company has been booked in six cases for cheating depositors to the tune of several crores. Apart from Odisha, the mega raid is going on in 20 other places across the country.
As per initial reports, the raids are being conducted at 10 places in Odisha including Ganjam and Bhubaneswar. Apart from this, raids are also underway on the properties linked to Golden Land Developers Limited which is a Delhi-based company.
Also Read: Chit fund scam: 16 acre land of Golden Land Developers seized
The Company was registered in 2008 and Cuttack ADM had earlier auctioned some land of the chit-fund company in Ganjam and other parts of the state in June 2016. The bidders had participated in an auction for 2 acres and 101 decimals of land at Chhatrapur and 83 decimals at Tikiti.
Sources said the Delhi-based firm was booked in six cases for cheating depositors to the tune of several crores in 2013.
Today, the officials of the ED are carrying out raids on the houses of the Company’s Director, manager and other officials in Odisha. Only after a proper investigation, it can be ascertained what has been found by the investigating agency.
After the death of the Sahara group founder Subrata Roy, the victims expressed apprehension over getting their money back. They urged the state government to take necessary measures to return their money.
“In spite of the announcement by the Centre to facilitate the return of money to the investors of Sahara Chit fund, there are a lot of loopholes in the online and offline process. The portal launched for the smooth transaction of the funds is not working properly, which is making it difficult for us to get our money back," said a victim during the protest.
Another victim who worked as a Sahara investment agent said, “Apart from collecting investments from depositors, I had also invested Rs 10 lakh in the company. But after the scam, the victims are knocking on my door and I am even unable to give my children quality education. We direly need our invested money back.”
According to reports, Khan, who was the director of Fine India chit Fund, was granted bail in a case filed by the Enforcement Directorate (ED). Earlier, Nasir was granted bail by the Supreme Court in a Central Bureau of Investigation (CBI) case.
In the year 2009, the Central Bureau of Investigation (CBI) arrested Nasir Khan while conducting a probe into the chit fund scam in Odisha.
Fine India was active in all the districts of Odisha and over Rs 500 crore was allegedly scammed by the company.
Accused Nasir also worked in a Hindi film ‘Shadow’ and was the producer of the movie.
Also Read: Seashore chit fund scam: Charges framed against ex-Choudwar-Cuttack MLA Pravat Biswal
In a major development in the Odisha chit fund scam investigation, the CBI in September 2023, framed charges against former Choudwar-Cuttack MLA, Prabhat Biswal and his wife Laxmibilasini.
The charges were framed against the husband-wife duo for their alleged involvement in the multi-crore chit-fund scam.
Biswal and some other BJD leaders' involvement in the multi-crore Ponzi scam came to light after the national probe agency took over the case in May 2014. The Supreme Court of India had directed the CBI to take over the investigation.
The charges were framed against the husband-wife duo for their alleged involvement in the multi-crore chit-fund scam.
The Bhubaneswar CBI Court-I in the presence of Biswal and his wife framed charges against them under Sections 420, 120 B, 409, 467, 468, and 471 of the Indian Penal Code. It is learned that Pravat, when asked by the court to own up to the charges or go for a hearing, opted for a hearing and said it should be made without delay.
Notably, the alleged involvement of Biswal and some other BJD leaders in the multi-crore Ponzi scam came to light after the national probe agency took over the case in May 2014. The Supreme Court of India had directed the CBI to investigate the matter.
In 2014, the then Banki MLA, Pravat Tripathy, and Mayurbhanj MP Ramachandra Hansdah were arrested in two separate cases.
Later in 2017, Biswal was arrested in connection with a dubious land deal with Seashore Group chief, Prashant Dash. It is alleged that Biswal had struck a controversial land deal worth Rs 25 lakh with Seashore group in his home district of Jajpur and camouflaged it as a genuine business transaction through his wife Laxmibilasini’s account.
The bizarre state of affairs exposes the state government’s tall claims of refunding the money of the duped investors. The affidavits and other important documents have been rotting in the Buxi Bazar-based office.
Earlier, the state government had formed a commission to probe the chit fund scams and take appropriate steps to refund money to the victims. The state government has also formed a corpus fund worth Rs 300 crore.
Already, the state government has spent a whopping Rs 6 crore on the probe. The probe commission has already identified 4.96L victims and submitted a report to the state government, but no step has reportedly been taken to compensate them.
Till today, only 2100 victims have been compensated while the remaining victims are just made to wait with false promises. The condition of the affidavits and other important documents exposed the seriousness of the state government in refunding the money to the duped depositors.
The condition of the affidavits has left the victims in a state of shock who demanded immediate action in this regard. Weeds have started growing on the affidavits and documents kept at the commission’s office.
Now, questions are being raised on the state government’s promise to refund all the money to the victims.
No comment could be obtained from any concerned official in this regard.
As per reports, Sashikant floated a Ponzi scheme and promised the investors in his village and around Aul to double whatever money they deposit in the scheme, in three months. However, the depositors grew suspicious after three months when they did not receive the promised returns.
Tried to trace Shashikant, but he was nowhere to be found. Angry after losing their money, locals, gheraoed his house in Balisahi on Wednesday and demanded his father, who is a retired Reserve Bank of India (RBI) employee, to return the money his son has taken.
Prabhat Kumar Barik, an investor said, “I collected Rs 7 lakh from the market and deposited with Sashikant. He promised me to double the money in three months. But after some months he never showed up neither returned the money.”
“The people from whom I collected the money have been asking me to return it, but I cannot return them as all the money is with Sashikant. I do not want double returns. I just want him to return what he took from me,” Barik said.
Speaking about his son, Sashikant’s father Bhabagrahi Gochhayat said, “People come to us and allege that my son has taken money from them and demand us to return the money. But I do not have any idea what it is all about and why they gave money to my son, if it is true at all.”
“I am a pensioner and living my life with whatever paltry pension I receive every month. How can I pay them such a big amount,” he said.
No complaints have been filed with the police in this connection yet.
Kar was arrested based on the complaint filed by one Mahamanya Jena of Sahadebkhunta area in Balasore district. The complainant had alleged that Kar had induced him to invest in an App/website- ‘Cloud-Fut’ for earning extra money.
The EOW officials said that the complainant had invested Rs 2,13,038 between January and March, 2023.
“When he was to get Rs 50,57,117 on his invested amount, as shown in the wallet of ‘Cloud-Fut’, suddenly the website stopped functioning and the informant could not withdraw the amount,” EOW said in a release.
The ‘Cloud-Fut’ is an online APP/ linked based company running a huge Ponzi/ MLM scheme fraudulently claiming to be a crypto mining company.
It claimed itself to be a USA based company headed by some Richard Purcell. It also produced fake certificates of RBI to gain the trust of investors. It was also claimed that Government of India has made a 10 years agreement with “Cloud Fut”.
Over 80,000 investors across the country were duped with a promise of multiplying their money in a very short period. At least 200 investors are from Balasore district alone.
It was mainly running through Telegram Channel and Whatsapp groups.
“‘Cloud-Fut’ has got all India ramification and has cheated lakhs of people across India in the name of Crypto Mining. It is actually running the online Ponzi scam in the name of Crypto Mining,” the EOW release added.
So far, the enforcement agency has attached both moveable and immovable assets of the ponzi firm worth Rs 1,171 crore.
Sharing the details, the Enforcement Directorate tweeted, “ED has attached movable and immovable properties having a present market value of Rs. 250 Crore (approx.) in an ongoing investigation against Rose Valley Group of Companies and its promoters under the PMLA, 2002. Total attachment in this case till date is 1171.71 Crore.”
According to sources, the ED is continuing its investigation into the multi-crore chit fund scam under the Prevention of Money Laundering Act.
Earlier several political leaders and employees of the chit fund company were arrested and questioned in connection with the case.
The ponzi firm allegedly duped thousands of gullible investors in several states including Odisha to the tune of crores of rupees assuring them of higher returns.
It is worthwhile to mention here that, as many as 2,38,477 small depositors in Odisha, who had invested in the Rose Valley ponzi firm, have got refunds to the tune of around Rs 60.22 crore. This was informed by the State Finance Minister Niranjan Pujari during the Budget Session of the Assembly.
The accused has been identified as Nilesh Kar from Angaragadia area of the district.
As per reports, Nilesh was earlier selling phenyl in a car. He duped people in and outside the district to the tune of crores of rupees by luring them to invest money through an app named CloudFut.
Nilesh was working as the district head of the chit fund company. He lured people with the false assurance that the investors can get Rs 49 per week for investing Rs 50 in the company. He managed to collect crores of rupees from the people.
A person identified as Nimai Charan Jena has invested Rs 2.50 lakh in the company. However, he did not get any weekly return as per the assurance given to him by Nilesh. Subsequently, he filed a complaint with the police.
Following the allegations, the Economic Offences Wing (EOW) arrested Nilesh. He has been sent to judicial custody.
As per EOW sources, Nilesh has a deposit of Rs 50 lakh in his account.
“The fraudsters have opened a website named Crypto Currency Mining. Through the CloudFut app and the website, they duped crores of rupees from the people. The incident came to the fore when a person complained about the chit fund scam with the police. The complainant had invested Rs 2.5 lakh with the false assurance that he will get Rs 50 lakh. He approached the police when he didn’t get any return,” said public prosecutor Pranab Kumar Panda.
“As many as 4,76,102 depositors have given applications to get back their money from Goldenland Developers. From 30 chit fund companies in the State, only the depositors in Rose Valley have been identified and they have been refunded the money. Other applications of the depositors in different chit fund companies are being audited,” said Pujari to the House while answering a question of BJD MLA Soumya Ranjan Patnaik.
Earlier in 2018, a special court hearing the case of the Rose Valley chit fund scam under the Odisha Protection of Interest of Depositors Act had ruled that 2,38,477 small depositors will get their money back.
The Supreme Court of India had also asked the Odisha government and the CBI to submit a report on the steps taken to refund the money of the chit fund beneficiaries in the State. The Orissa High Court had also directed the competent authority to return the money to investors duped by chit fund companies maintaining a first come first release basis.
(Reported by Jagdish Das)
According to sources, the court ordered the case to be continued against the former Balasore MP.
It is being alleged that Rs 1.75 crore was transferred to Jena’s bank account by the ponzi company.
Notably, the alleged involvement of some leaders of the BJD including Jena in the multi-crore ponzi scam came to light after the national probe agency took over the case in May 2014. The Supreme Court of India had directed the CBI to investigate the matter.
In 2014, the then Banki MLA, Pravat Tripathy and Mayurbhanj MP Ramachandra Hansdah were arrested in two separate cases.
Dharmasala MLA Pranab Balabantray, former Choudwar-Cuttack MLA, Pravat Biswal and Jena were questioned by the national probe agency in connection with the scam.
Later in 2017, Biswal was arrested over a land transaction between his wife and Seashore Group chief, Prashant Dash.
(Reported by Goutam Panda, OTV)
The Apex court has asked the investigating agency to let it know about the latest development of the case on Saturday.
According to sources, the Apex Court slammed CBI on the tardy progress of the case. It had asked the CBI to specify steps being taken by the Odisha government to refund money to the chit fund beneficiaries.
A two-judge bench comprising Justice MR Saha and Justice Krishnamurari expressed displeasure over the Odisha government’s delay in refunding money to the beneficiaries and directed the Odisha government as well as the CBI to submit a status report on the development of the case by Saturday.
Speaking to reporters, petetioner's lawyer, Jitendra Mohapatra said, "The Supreme Court did not pass any written order. However, the two-bench judge took serious observation of the chit fund case and said this is not a matter to be taken lightly and the CBI is not investigating properly and in a timely manner."
In its hearing, the bench again made it clear that Supreme Court just cannot spend 10-15 years for hearing a case. The CBI has also been asked as to why it has failed to submit its chargesheet in this connection.
Besides, the court has asked the CBI not to linger the case anymore.
Commenting on the decision, Convenor of the Chit Fund Investor's Front, Jayant Das said, "This rebuke by the Supreme Court will definitely bring the investigating agency on the right track. It will also help State government mend ways."
It is pertinent to mention that Seashore Chit Fund firm was the first company that came under the scanner of the Supreme Court and, consequently, the court directed the CBI to investigate 44 chit fund companies.
Meanwhile, political mudslinging have begun following the Supreme Court observation. While, BJD raised questions on CBI's credibility, the BJP asked why the BJD does not refund money to the beneficiaries from the corpus fund constituted for the same.
BJD MLA, Amar Satapathy said, "This proves that the CBI does not always work efficiently. The Central investigating agency now has an credibility issue."
"CBI is investigating. But what about the State government and the corpus fund they had created to refund the money. Why do not they use it for so many years," asked Golak Mohapatra, General secretary, State BJP.
While the chit fund beneficiaries are still waiting desperately to get back their hard earned money, the appointment of amicus curie has rekindled their hope.
It is pertinent to mention here that, hearing a writ petition on October 11, the nation’s apex court had asked the Odisha government and the CBI to submit report on the steps taken to refund the money to the chit fund beneficiaries.
Expressing their dissatisfaction over the undue delay in returning money to the beneficiaries, the two-judge bench chaired by Justice MR Saha and Justice Krishnamurari had asked the State government as well as the CBI to submit a report on the progress achieved so far.
The next hearing was scheduled on November 14. While hearing the case, the SC has asked the CBI to submit its report by November 25. Notably, the CBI had sought time to submit its report.
Demanding their money back, the beneficiaries have been staging strikes and demonstrations time and again.
Notably, following the SC direction for CBI investigation on 44 chit fund companies operating in Odisha, the State government had earlier formed a commission of inquiry to identify the beneficiaries.
According to an EOW official, MD of Jetex Ocenair Pvt. Ltd Jaydeep Raha was arrested on basis of a complaint filed by Subash Chandra Pradhan of Bhanapur under Balanga police limits of Puri district.
The EOW official said chit fund companies Ambitious Diversified Projects Management Ltd, Kolkata and OAK India Multistate Credit Co-operative Society represented through its directors and members in Odisha. They illegally collected Rs 2.62 crore from 1,968 investors in Odisha between 2010 and 2014, under the allurement of repaying with high rate of interest.
Subsequently, they closed their offices without paying the interest as well as the principal amount and fled away from the locality, the official said.
During investigation, the police found that out of the above collected amount, during the year 2011-12, a sum of about Rs 1.83 crore has been diverted to the account of Jetex Oceanair Pvt. Ltd, whose MD is the present accused Jaydeep Raha.
After being apprehended, he could not give any satisfactory reply in respect of receipt of such a huge amount. Three cases have also been registered against the chit fund company in West Bengal.
Earlier, MD Omkar Singh and other directors Kunal Tiwary, Arshad Hussain and Mringanka Sekhar Chakrabarty of the chit fund company were arrested in the case.
Hearing a writ petition, a two-judge bench chaired by Justice MR Saha and Justice Krishnamurari conveyed their dissatisfaction on the delay in refunding money to the beneficiaries and directed the Odisha government as well as the CBI to submit a report on the development of the case.
The bench also asked to point out all the efforts the government has done so far to return the money of the chit fund beneficiaries.
Speaking to OTV, petitioner’s counsel, Prashant Bhushan said, “The Supreme Court had ordered CBI investigation on 44 chit fund companies operating in Odisha. Then the Stat government formed a commission of inquiry to identify the beneficiaries of the chit fund.”
“Then the Odisha government kept extending the tenure of the commission for eight years in which they claimed to have identified 5 lakh beneficiaries. But then the government terminated the commission in 2020 without giving it any more extension. However, the Odisha government has turned deaf and not a single beneficiary has received any money till now,” Bhushan added.
As per the petition, an audio CD was submitted to the CBI SP MK Sinha on March 28, 2015 that reveals names of 47 BJD MLAs, MPs, Ministers and Saroj Sahu who is close associate to the Chief Minister of Odisha, took Rs 550 crores from Seashore Chit Fund.
Seashore Chit Fund Company was the first company that came under the scanner of the Supreme Court and, consequently, the court directed the CBI to investigate 44 chit fund companies.
Earlier in March this year, the Orissa High Court had directed the competent authority to return the money to investors duped by chit fund companies maintaining first come first release basis.
After going through the details, the HC found the competent authority has already kept a sum of Rs 48,16,49,527 in its pocket.
Taking exception to it, the BJP accused the Speaker and government of trying to kill democracy.
“The Opposition party has been given a right to raise any current issue for discussion in the House through an adjournment motion. We had moved an adjournment motion to discuss the chit fund issue, but the Speaker rejected it without clarifying the reason thereof. It clearly indicates that the Speaker and the government are conspiring to kill the democracy,” alleged Opposition Chief Whip Mohan Charan Majhi.
Pointing out the reasons why the motion can’t be discussed in the House, Speaker Bikram Keshari Arukha said the case is sub-judice before the Orissa High Court and a commission is probing it. This apart, in 2014, the then Speaker of the Assembly following the advice of the Advocate General had said in his ruling that there can’t be a discussion on the chit fund issue in the Assembly.
Similarly, Congress also stalled Question Hour on two issues.
“We stalled the Assembly over two issues. First, we demanded the state government should announce drought in Western Odisha and, second, insurance money of 2021 Kharif be distributed among the affected farmers,” informed Congress MLA Santosh Singh Saluja.
The House went on witnessing uproarious scenes from the beginning of the Question Hour, forcing the Speaker to adjourn the House repeatedly.
As soon as the House assembled for the day, it witnessed pandemonium with members of Opposition creating ruckus, leading to the first adjournment till 11 am. It was when the House reassembled that the same uproarious scenes were witnessed, forcing the Speaker to adjourn the House for 20 minutes.
Meanwhile, a delegation of former legislators met Chief Minister Naveen Patnaik. Their demands included their pension be hiked from Rs 30,000 to Rs 50,000 and medical expenses from the present Rs 2,000 to Rs 10,000.
The Directorate of Enforcement(ED) has provisionally attached movable and immovable assets worth Rs. 3,92,20,000 belonging to Pravat Ranjan Biswal, ex MLA, Cuttack and M/s Media Guru Consultants Private Ltd under the Prevention of Money Laundering Act (PMLA), 2002 in a ponzy scam case.
According to the anti-corruption agency, the ex-MLA made fraudulent collection of deposits from the gullible public in guise of issuance of preferential shares by enrolling the depositors as members of cooperative societies, the ED said in a press release.
These companies were neither registered as Non-Banking Finance Company (NBFC) with Reserve Bank of India (RBI) nor listed in National Stock Exchange of India (NSEI) and as such not authorised to collect such public deposits.
The attached assets include bank balance of Rs 25 Lakhs at SBI Cuttack Branch belonging to Pravat Ranjan Biswal and one immovable property belonging to M/s Media Guru Consultants Private Ltd. in NOIDA, Gautam Buddh Nagar, Uttar Pradesh.
Investigation was initiated under PMLA, 2002 on the basis of FIR and Chargesheet filed by the Economic Offence Wing (EOW) of Crime Branch, Odisha Police and FIR, Chargesheet filed by CBI, under various sections of the Indian Penal Code against M/s Seashore Group of Companies which were involved in the process of money laundering.
These companies generated proceeds of crime and diverted the said tainted money into acquiring different movable and immovable properties.
They fraudulently and dishonestly collected huge amount from the general public out of which Rs 25 Lakhs was diverted to the ex-MLA & his family members and Rs 4 Crore was diverted to M/s Media Guru Consultants Private Ltd to set up a News and Current Affairs TV Channel named STV SAMACHAR.
The ED has earlier attached properties worth Rs. 258 crore by issuing four PAOs which were duly confirmed by the Adjudicating Authority under PMLA and also filed Prosecution Complaint before Special Court (PMLA).
Further investigation into the matter is under progress.
On the other hand, Pravat Biswal said that the ED has only attached Rs 25 lakh bank balance belonging to him and not Rs 3.92 crore.
Laxmi Bilasini, the wife of the former MLA said she is not aware about their Rs 3.92 crore property. "I am surprised at ED's claim of Rs 3.92 crore of property. But yes, we had brought Rs 25 lakh from Prasanna Das to buy land, an issue which everyone knows," she said.
Prince Kumar, a resident of Muzaffarpur in Bihar, has been accused of forging documents and misappropriating Rs 1.5 crore from investors in Odisha. He was produced before the court of CJM, Mathura and is being brought to Odisha.
The EOW said Prince Kumar and his company duped hundreds of investors across Odisha giving false assurances of high returns under different schemes involving various digital/online products.
The company collected huge money from investors assuring them very high returns and misleading them that this company is running successful Desi/ Indian version of Whatsapp, YouTube, Amazon, email, online/digital gaming, digital payment, Netflix etc. kind of products.
“Prince Kumar gave false assurances to investors that their deposit amount would double within one year. In doing so, he was able to induce the investors to invest in the company although the company has no commensurate/real business activity to pay high returns,” the EOW said in a press release.
“The deposit collected by the company under the cover of Direct Digital Marketing is nothing but Ponzi Scheme,” the EOW said adding the investigation of the case is on.
A single bench comprising Justice Biswanath Rath passed the order on March 29 while hearing a petition by chit fund company GLP Developers Ltd and others.
In their pleas, GLP Developers Ltd and others had earlier expressed willingness to repay money to the investors after facing hassles and untoward threats, assault on office bearers by incensed depositors.
M Kanungo, appearing on behalf of the ponzi companies, contended that despite the direction of the HC dated April 28, 2017 for release of benefits in favour of the depositors, the State Authorities indulged in dilly-dally tactics for their own gain and to the risk of the petitioners.
After going through the details, the HC found the competent authority has already kept a sum of Rs 48,16,49,527 in its pocket.
“It is unfortunate to note that even after not finding any order of attachment through the CBI proceeding, instead of attempting to get concrete information on the claim of the Banks and taking steps as appropriate, unfortunately the State Authorities have proceeded for recovery proceeding under the OPDR Act in an attempt possibly to wash their hands,” the court said.
The Court observed, ‘the approach of the Competent Authority is not appearing to be genuine and on the other hand this Court finds, there is dilly dally tactics.’
“It is, at this stage of the matter, this Court directs the competent authority in the scrutiny of the application of the valid and identified depositors, to make an attempt to release the amount maintaining first come first release basis,” the court ordered.
The next hearing has been scheduled for April 29, 2022.
Samanta was arrested from Naskar Road, Narendrapur in Kolkata, West Bengal on March 6, 2022 and was produced before the additional Chief Judicial Magistrate, Baruipur, South 24 Pragana (South), Kolkata yesterday.
The accused has been brought to the State on transit remand and will be produced before the designated chit fund court in Balasore today.
According to the EOW, a case was registered against Pratap Kumar Biswal, Chairman & Managing Director of Mass Infra Reality Ltd and Human Welfare Credit & Thrift Co-operative Society Ltd and its other six directors including the present accused, Tapan Kumar Samanta for allegedly duping depositors to the tune of several crores on the pretext of returning high rate of interest on deposits under different schemes floated by their company.
The investigation revealed that M/s Mass Infra Reality Ltd. was registered with ROC, Kolkata during September, 2010 under the Companies Act, 1956 having its registered office under Barasat Police Station, 24 Praganas in West Bengal.
In 2012, the company changed its name to Human Welfare Credit & Thrift Co-operative Society Ltd registered under Multistate Cooperative Societies Act, 2012 having its registered office in Laxmi Nagar, New Delhi.
The company represented through the Managing Director and other Directors including the present accused had allured general public with false promise of returning high rate of interest on deposits under different schemes of the company and unauthorisedly collected huge amount of about Rs 15 crore from several investors and absconded from the locality after closing their offices.
Earlier, the accused MD Pratap Kumar Biswal was arrested on July 25, 2021. He is still in the judicial custody.
Sarat Kumar Nayak and Prabhat Ranjan Das associated with M/s Auroxa Deal Multitrade (OPC) Pvt. Ltd were arrested from their residences in Balasore district. Earlier, the director and promoter of the ponzi firm, Babu Singh Kushwaha was arrested by the EOW.
All the three accused have been remanded to judicial custody, after being produced before the designated court under OPID (Odisha Protection of Interests of Depositors (in Financial Establishments) Act, Balasore, the EOW said.
The M/s Auroxa Deal Multitrade (OPC) Pvt. Ltd was functioning from a rented building near Suraj Hotel in Sahadevkhunta of Balasore district. The director and promoters of the firm allegedly duped as many as 500 gullible depositors to the tune of more than Rs 10 crore on false promise of high returns on their deposits/investment in different schemes launched by the company.
The EOW had registered a case in this regard following the complaint of Chandra Kanta Dash and others and launched an investigation.
The investigation revealed the company under various lucrative schemes/packages promoted direct selling of various household goods/ Electronic goods with high returns having cashback offers.
The arrested trio had made wide propaganda in Odisha and motivated the newcomers/investors to join in various business packages and collected huge deposits from the public.
“It has been learnt that the company had collected more than Rs 10 crore from as many as 500 investors and duped them subsequently. Investigation of the case is continuing,” the EOW said in a statement.
The EOW has also issued three separate phone numbers seeking information from anyone having any clue about the wanted criminals.
The first of the three offenders, Aditya Dash, has been accused in the chit fund scam by M/S. Systematix Financial Services Pvt. Ltd and its sister concern. The police have launched dedicated phone number -943709762 to help people who want to share any information on Dash. As per reports, his last known address is Balisahi under Sea Beach Police station in Puri.
The second one is Triveni Kumar Mohanty, accused in the chit fund scam by Star Consultancy Services Pvt Ltd. The phone number rolled out for information on him is 7008160114. His last known address is Plot no – L/72, Baramunda Housing Board Colony, Bhubaneswar, Khordha.
Similarly, the third accused Jyoti Ranjan Beura aka Golden Baba is an accused in a fraud case by M/S Jyoti Trading and Co. People having any inkling about his presence or wanting to share any other vital information on him can contact through 9438129612. His last known address is Plot no – 466, Lane 6, Sector 5, Niladri Vihar, Bhubaneswar.
According to the Crime Branch notification, all the three have been absconding since long. Whoever gives any actionable information leading to arrest of these persons will be suitably rewarded. The informant’s name will be kept secret. The information should be given only to the mobile numbers provided and not on any other platform, the notification reads.
Prior to Senapati, Managing Director (MD) Kedarnath Sahoo, Director Suresh Chandra Sahoo and Chief Executive Subash Chandra Mohanty had been arrested in connection with the case.
Senapati has been forwarded to the court, informed the EOW in an official statement.
EOW said one Debendra Kumar Nayak had filed a complaint with the agency accusing that Sahoo, who identified himself as the MD of the ponzi firm, and other directors of the company have duped a large number of investors to the tune of crores of rupees on the pretext of returning high interest on their deposits under the various schemes launched by the company.
Based on the allegations, the EOW had initiated a probe into the matter and found Akash India Multi Complex Ltd was incorporated with ROC, Cuttack and had its registered office at Dumuduma and Khandagiri in Bhubaneswar. It also has branch offices at Niali, Charichhak, Puri, Astaranga, Baungarigaon, Panikoili, Bramhagiri and Jagatsinghpur.
The EOW also revealed that Senapati along with other accused persons had collected approximately Rs 3 crores from investors under different schemes of the company from 2011 to 2016.
The EOW said the company initially had made some meagre payment to the investors to win their trust but subsequently from the year 2013, stopped making any payment to the investors and closed down their offices functioning at different places. The accused persons absconded thereafter.
The movable and immovable assets created by the accused companies from out of the public deposits have been attached under section 3 of OPID Act, 2011. The investigation in the case is underway, added the EOW.
Addressing a presser, the members of the duped investors’ joint forum said the agitation against alleged deception by the government will be organised throughout the State.
The forum said the State government has been hoodwinking the depositors duped by the dubious money circulation companies for the past eight years.
“When elections near, the State government makes various promises assuring to refund the money of the cheated depositors. However, the government forgets all promises once the elections get over,” the forum alleged.
Rabi Das, advisor of duped investors’ joint forum said, “The duped investors filed affidavits by spending crores of rupees, but how many of them got back their money?”
“The State government does not provide the details regarding the property, bank account, houses and plots it has confiscated from the chit fund companies and how many investors were refunded with the proceeds of the seized property,” he alleged.
Jayanta Das, president of duped investors’ joint forum said, “We will organise Satyagraha on September 29 from Deogaon tehsil in Bolangir. The agitation will spread like wildfire throughout the State and continue till the last duped investor is refunded.”
Sleuths of the Economic Offence Wing of Odisha Crime Branch with the help of Visakhapatnam police conducted a raid at Prasad’s house and arrested him. They also seized Rs 45,00,000 and other important documents from his residence.
According to police sources, 52-year-old Prasad, who is currently the chairman of Andhra Pradesh Education and Welfare Development Corporation, will be brought to Bhubaneswar today for further interrogation following a health check-up at Visakhapatnam. Later he will be produced before a magistrate.
According to reports, Prasad-owned Wellfare Buildings and Estates Pvt Ltd. has been accused of duping thousands of depositors from Odisha, Andhra Pradesh and Chhattisgarh to a tune of Rs 1,200 crore. A case was booked against him by the Odisha Police in 2019.
Earlier in 2016, the CBI had searched his office and residential premises in connection with alleged chit fund scams to the tune of hundreds of crores.
(Edited by Suryakant Jena)
According to reports, Datum Marketing Company has allegedly duped nearly Rs 100 crore from depositors in Ganjam and neighbouring Andhra Pradesh through several lucrative schemes.
Both Braja Sundar and his wife were managing director and director of the chit fund company and were arrested from Bhubaneswar on November 6. Two cases were registered against the couple and some employees of the company in 2016 and May this year, police said.
Meanwhile, depositors duped by the ponzi firm are worried over getting back their money.
As the arrested MD claimed before media that the bonds as shown by people are 'forged' and he is being falsely implicated, several depositors have now sought help from Berhampur ASP Shantanu Das to get back their deposits.
“How depositors were getting monthly interest money if they had not deposited the amount with the company. The MD has been hoodwinking the innocent depositors by saying that the bonds are forged. The police should carry out a detailed investigation,” said Uma Badhi, a depositor.
Echoing similar views, another depositor, Sukanti Sahu said, “I have not received anything as I have linked the monthly installments with the recurring account with the chit fund company.”
The Berhampur ASP Shantanu Das on the other hand informed that a special team along with a legal expert has been formed to investigate the case.
“The investigation will take time as we are collecting information and proceeding as per the Odisha Protection of the Interests of the Depositors Act (OPID),” said Das.
The saffron party passed as many as 15 political resolutions including 10 on corruption issues at its State Executive meeting today which includes a blueprint to highlight chit fund scam, mining scam, sapling scam, cooperative bank loan scam and Omfed scam.
Besides, the party is also ready to highlight the rejection of Centre’s Ayushman Bharat scheme by the ruling-BJD and the duping of funds through Biju Yuva Vahini, Ama Gaon Ama Bikash yojana and the newly implemented food security scheme.
Member of the BJP National Executive, Pratap Sarangi said, "The State government is embroiled in several scams including pulses scam, sattu scam and CM Naveen Patnaik is the 'ring leader of corrupt'. BJP will intensify its agitation against the ruling-BJD."
Declining the charges, BJD spokesperson Amar Prasad Satpathy said, "It seems they (BJP) don't have any agenda and are only to gain public attention by making such statements."
Earlier in the day, Smriti Irani, Union Textiles Minister came down heavily on the state government saying that it has failed to provide security to women.
In his comments, BJD spokesperson Sasmit Patra questioned, "While BJP activists are being arrested in other parts of the country for violence against women, why is she (Smriti Irani) mum on that."
Expressing similar views, OPCC chief Niranjan Patnaik said “Women are being neglected in BJP-ruled states so it has no right to make such statements.”
Further responding to the allegations of non-receipt of LPG subsidy, Pradhan revealed that Patro has received a subsidy of Rs 1850 for five LPG cylinders since April this year. "It is shameful that despite availing subsidy for LPG cylinders provided by the Centre, Surjya Narayan Patro is bringing such allegations," Pradhan said.
However, Patro brushed aside the allegation of availing LPG subsidy. He also refuted their involvement in chit fund scam saying neither he nor his son was called by the investigative agency.
"Forget about grilling, nobody has ever talked to me about chit fund issue. Like everyone else I took LPG cylinders for my family, but I have not received any subsidy," Patro said.
Earlier on Friday, responding to the complaints about failure of Pradhan Mantri Ujjwala Yojana (PMUY) in Odisha, Pradhan had explained about the PMUY requesting the BJD government to cooperate in making Odisha 100 per cent smoke-free State and not involve in politics over a sacred scheme.
Pradhan had also written a letter to Patro referring to the ‘factually incorrect’ news reports on beneficiaries under PMUY failing to avail LPG cylinder refilling.
According to reports, a company -Sunshine Infra Build Corporation Limited has allegedly duped to the tune of Rs 10 crores from hundreds of depositors in Koraput district through its various attractive schemes.
“I deposited the money for three years but did not pay the full amount after news of fraud from different areas. The company ran away with the money deposited by many people in the town,” said a depositor, Laxman Sabar.
As per sources, lured by huge returns, hundreds of people deposited their money with the company, which had opened its office in Jeypore in 2011.
Reportedly, the company shut down in 2013 and the depositors have neither received their money nor have any information about the company.
“They didn’t inform about the cancellation of license. They said to return the money from Delhi after selling the properties. No proof was provided to us and we are not being able to contact them now,” said an agent of the company Sunam Sagar.
Sagar further said an amount of Rs 10 crore has been taken by the company.
Meanwhile a complaint in this regard has been filed at the Jeypore Town Police Station by the depositors.
“A complaint has been lodged regarding the chit fund company which was operating in the area in 2013. Investigation is underway and necessary steps will be taken after a detailed probe,” said IIC of Jeypore Town Police Station, Baleswar Siddhi.
The depositors have demanded the arrest of the directors of the company and immediate refund.
The extended tenure will be from August 5, a notification issued by the state Home Department said.
Since its inception in 2013, the Commission has submitted five interim reports to the government.
So far, it has managed to identify over two lakh small investors. The Commission had issued notice to 486 chit fund companies, an informed source said.
The state government had set up a Rs 300-crore corpus fund in 2013 to refund the money of small depositors who had invested Rs 10,000 or less in the chit fund companies.
The Commission, among other things, was asked to suggest as to how the small investors would get back their money from the corpus fund of Rs 300 crore.
"I have no information as I only came to know about it from various media reports," said Patro.
Patro's statements followed after reports that his son Biplab was allegedly quizzed last month in connection with his links with Artha Tatwa (AT) chit fund scam came to fore yesterday.
Sources said Biplab was quizzed after CBI got clues that some payments made towards purchase of computers for his company were made from the bank accounts of Artha Tatwa (AT) chit fund company.
As Biplab's father, Surya Narayan Patro had been a minister in the ruling-BJD government several times in the past; speculations are rife that AT group showed undue favours to Biplab's company. However, Biplap could not be contacted for comments.
"I had spoken to CBI officials, but they did not say anything about my son's interrogation," said Patro while dodging further questions by media today on the issue.
Whether Patro spoke to CBI officials to get some information or tried to influence the probe, his statements have now provided an opportunity to the opposition parties to train their guns on the State government.
"If the minister wanted to know anything he should have asked his son instead of contacting CBI," said BJP leader Golak Mohapatra.
BJD spokesperson Sasmit Patra on the other hand stated that, "As I have not heard and aware what Minsiter Surya Patra stated, commenting on it would be inappropriate."
In another development, Justice MM Das Commission of Inquiry, in its 5th interim report submitted to Odisha government recommended refund of money to more than 1 lakh small depositors duped by 290 ponzi firms.
According to sources, the central investigating agency questioned Biplab in Bhubaneswar today.
The CBI had summoned Biplab after getting vital leads on payments made towards purchase of computers from the bank accounts of Artha Tatwa (AT) chit fund company, informed sources.
The CBI sleuths also questioned a realtor and a hotelier today.
Comments from Biplab could not be obtained while Minister SN Patro avoiding camera said no such thing has happened.
A total of 1,096 out of 2,306 small depositors in Balasore district have been identified for refund and will be getting their money in phases.
The refund process is being carried out under the supervision of the Balasore district collector, Ramesh Chandra Rout.
As per the guidelines of the Finance department we have transferred money to the accounts of 350 small depositors who had deposits less than Rs 10,000. The amount was released after Tehsildars sent certified copies of the indemnity bonds along with a copy of the bank passbooks of the identified depositors, informed Rout.
Balasore Additional Collector, Manas Kumar Padhi had earlier informed that the money will be distributed to the small depositors after securing indemnity bonds and the amount for this purpose has been released to the Tehsildars.
As per sources, the Justice MM Das Commission of Inquiry submitted four interim reports to the State government in which it has identified 1, 16,504 small depositors. Initially investors with deposits of less than Rs 10,000 will get the refund, regarding which the Finance department Secretary, in a letter, has already asked district Collectors to begin the process. The depositors have been identified on the basis of first two interim reports, added sources.
Earlier on may 1, Finance Minister Sashi Bhushan Behera had informed that the process of identification of small depositors has started and they will get back their money soon. While the Finance department has written a letter to the district collectors regarding the identification of investors and subsequent refund, barring Rose Valley Chit Fund, identification of investors of 16 more chit fund companies has not started yet.
The State government had set up a Rs 300-crore corpus fund in 2013 to refund affected-depositors.
The Justice MM Das Commission has submitted four interim reports to the State goverment in which it has identified 1, 16,504 small depositors.
Initially investors with deposits of less than Rs 10,000 will get the refund, regarding which the Finance department Secretary, in a letter, has asked district Collectors to begin the process.
Finance Minister, Sashibhusan Behera stated, “Money will be refunded to small depositors and there should not be any doubt about that.”
Small depositors have been identified on basis of interim report 1 and 2 submitted by the commission to the State government, informed sources.
In Balasore, as many as 2,306 small depositors in 12 blocks have been identified who will get refunds after submission of an indemnity bond.
Balasore Additional Collector, Manas Kumar Padhi stated, “After securing indemnity bonds, money will be distributed to the small depositors. Money has been released to Tehsildars for the purpose.”
However, questions are being raised as to why it took the State government so long while the corpus fund announcement was made in 2013. Moreover, only investors in Rose Valley chit fund have been identified while doubts persist over the investors in 16 other chit fund companies.
“When the State has no information on the number of chit fund companies that were doing business, how all the depositors will be identified? The government is only hoodwinking people and trying to get political mileage ahead of the 2019 polls,” said a duped investor, Gyanaranjan Behera
The Court granted a two-month interim bail to the Cuttack Chowdwar legislator who was arrested by the Central Bureau of Investigation (CBI) on September 19, last year.
The CBI had arrested the three-time MLA in connection with a dubious land deal worth Rs 25 lakh with Seashore Group chief Prasant Dash.
It is alleged that Biswal had struck a controversial land deal worth Rs 25 lakh with Seashore group in his home district of Jajpur and camouflaged it as a genuine business transaction through his wife Laxmibilasini’s account.
Seashore chit fund is accused of duping investors to the tune of Rs 1,000 crore by promising high returns.
The Central probe agency has already filed two charge-sheets naming the MLA and five others including his wife, brother Arta Ranjan Biswal and lawyer Anup Senapati.
The Orissa High Court on November 10, 2016 had released Sarangi on conditional bail. She was asked to furnish a bail bond of Rs.50,000 with two sureties for the like amount to the satisfaction of Rourkela SDJM court.
However, one Kailash Chandra Lenka had moved the apex court challenging the order of the High Court.
It was Lenka who had lodged an FIR against Seashore Sundargarh Multipurpose Co-operative Ltd, at Raghunathpalli police station in Rourkela in 2013, accusing its Directors and office bearers of duping him of Rs 75 lakh.
Acting on the complaint Rourkela SDJM court had issued a non-bailable warrant (NBW) against Sarangi, who was a member of the board of Seashore Group.
She was later arrested by Twin City Commissionerate Police from Laxmisagar area in Bhubaneswar on June 7, 2016. She was lodged in Jharpara Jail after her bail plea was initially rejected.
Moreover, the apex court has asked the HC to conduct a hearing on the bail plea within four weeks, sources said.
Earlier in March, a team of three officials from the Corporate Affairs Ministry had quizzed Hansda in Jharpara Jail in Bhubaneswar in connection with the chit fund scam.
Acting on a petition filed by the advocate of the investigation team of Corporate Affairs of Government of India, the Special CBI court had allowed the Ministry’s officials to interrogate Hansda in jail.
Hansda is currently lodged at the Jharpara Special Jail in Bhubaneswar. He was suspended from the BJD after his arrest by the CBI on November 4, 2014.
As per reports, the duo had been absconding since months. The CBI sleuths, acting on a tip-off, managed to arrest them after they returned to Bhubaneswar from Madhya Pradesh yesterday.
Nirmal Infra is a Madhya Pradesh-based company. The Chouhan duo had opened a branch office of the firm in Odisha and duped people.
Later, they were produced before the Special CJM CBI court and sent to jail.
Meanwhile, the investigating agency is likely to take them on remand today for further investigation.
In the charge-sheet, the investigating agency has indicted Prabhat Biswal for allowing Seashore Group to carry out its illegal activities in Cuttack and its nearby area for which he received Rs 25 lakh transferred to the bank account bearing number 30621606478 belonging to his wife Laxmibilasini.
Earlier, Laxmibilasini was quizzed by the CBI several times in connection with the money transfer. CBI has mentioned in its charge-sheet that Laxmibilasini had produced forged documents to substantiate her claim. The charge-sheet also mentioned that Prabhat had extended political patronage to the company.
"There is a provision of life sentence for the offence mentioned in the charge-sheet. There is no exemption provided to any senior administrative officer or any legislator. The charge-sheet was filed as the agency had collected some evidences against them," said senior advocate, Siddharth Das.
Similarly, the charge-sheet has stated that former Managing Director of APICOL (Agricultural Promotion & Investment Corporation of Odisha Limited), Pradeep Hota and his wife Pratima Hota had suspiciously received Rs 19,70,925 in a joint bank account between 2008 and 2011 from the Seashore group.
Pratima Hota was falsely shown as an employee of Seashore to cover up the matter, read the charge-sheet.
"CBI has filed a charge-sheet and there are names of some administrative officials in it. It has also the names of their wives. If Prabhat Biswal has been arrested why others are moving freely? They are also not returning money to the 40 lakh duped investors," said Rabi Das, Convenor, Aarthika Sansthamananka Dwara Kshyatigrastha Milita Mancha (ASDKMM).
In the meantime, the State government has extended the tenure of Justice MM Das Commission of Inquiry set up to probe chit fund scam and identify affected investors. Its tenure was extended for six months coming into effect from February 5.
After duly considering the CBI's charge-sheet against Biswal and hearing both parties, the court rejected the bail petition of the legislator, informed sources.
Biswal had sought bail earlier last month after the central probe agency filed its second charge-sheet against five persons including Biswal and his wife Laxmibilasini in the multi-crore Seashore chit fund scam.
In the 100-page document, the investigating agency has indicted Cuttack Chowdwar MLA of fixing a land deal with Seashore CMD Prashant Das and availing financial benefits of nearly Rs 25 lakh from Seashore Group for allowing the ponzi firm to operate in several parts of Choudwar and Jagatpur in Cuttack.
This apart, a case under section 420, 120 (B) of IPC has been registered against all the five accused including OAS officer Pradeep Hota while names of 60 persons have been mentioned as witnesses in the case.
Biswal was arrested in connection with the incident in September 2017.
The court granted bail to Pal against a deposit of Rs 1 crore along with two sureties of Rs 2 lakh each. Besides, the parliamentarian was asked to surrender his passport to the Investigating Officer (IO).
Pal was arrested by the CBI from Kolkata on December 30, 2016 and was produced in a court in Bhubaneswar the following day.
The parliamentarian, while working as a director of the Rose Valley Group in 2010, had allegedly appointed his relatives to different positions in the Group.
Rose Valley had collected Rs 450 crore from its investors in Odisha, a chargesheet filed by the CBI in January 2017 had mentioned.
Another TMC MP Sudip Bandyopadhyay has also been arrested by the CBI in connection with the chit fund scam.
A day after his release from the Jharpara circle jail here on January 5, Das was arrested again in connection with three chit fund-related cases pending with Dhenkanal police.
He was taken on a five-day remand and later on a three-day remand by the Dhenkanal police for interrogation.
"The additional district and sessions judge was very much judicious while hearing the bail plea," said Das' lawyer Vishnu Kalyan Mangraj.
In its report, the Commission reportedly stated that a total of 55,563 small depositors have been identified after examining 1,38,388 affidavits from investors of as many as 342 companies.
Out of the total 55,563 small depositors, the panel has identified 10,037 depositors of chit fund firm Flourish India, 6,497 of Seashore, 3,798 of Saradha and 2,310 of Artha Tatwa.
Earlier in July last year, the commission had submitted its third interim report in which it had identified 41,519 small investors out of more than nine lakh affidavits filed by depositors.
The Commission had then asked the companies to refund money to the identified small investors.
Meanwhile, another three to four more reports would be required to complete examination of all the affidavits, sources said.
According to sources, police will interrogate Das for more information on his involvement in the multi-crore chit fund scam.
Earlier, the Seashore chief was released from the Jharpara circle jail after getting bail in eight cases on January 5. However, he was again arrested on January 6 in connection with three chit fund cases pending with the Dhenkanal police.
Meanwhile, the Central Bureau of Investigation (CBI) has filed second charge-sheet in the Seashore chit fund scam against five persons including BJD MLA Prabhat Biswal and his wife Laxmibilasini.
In the charge-sheet, CBI has indicted Prabhat Biswal of availing financial benefits from Seashore Group by allowing the company to operate its business in several parts of Choudwar and Jagatpur areas in Cuttack.
https://youtu.be/62hmjGBapHE
Das was released from the Jharpara circle jail here on Friday after getting bail in eight cases.
Speaking to the media, Das said his arrest has been done as per the law of the land because courts never issue warrant against a person who is already behind bars.
“I will move court for bail. The process of returning money to the depositors will be delayed due to the arrest but I will ensure all the investors of Seashore get their money as soon as possible,” Das added.
Meanwhile, Dhenkanal SP Basant Panigrahi said a team of the local police was sent to Bhubaneswar to arrest Das in connection with three cases pending against him with the Town Police Station.
“Das has been arrested from his residence at Jharpara. After interrogation, we will forward him to court and decide on our next course of action,” the SP said.
Also Read: Chit fund scam: Seashore chief Prashant Das released from jail
https://youtu.be/v48Vexyc8Ew
Sources said Das, the main accused in the Seashore chit fund scam, was granted bail in cases registered against him by the CBI and at district level. He was released from the jail at around 1pm today.
Das's brother Pravat Das and middleman Subhankar Nayak, who were also arrested in this connection, have already been released from jail on bail earlier this year.
Prashant Das was arrested by state Crime Branch from Mumbai on June 20, 2013, before the case was handed over to the CBI following Supreme Court order. He had been lodged at Jharpara jail in Bhubaneswar since then.
https://youtu.be/dSQp23WNMPY
Sharma told mediapersons, "The chief minister has not given any directive to undertake a probe into the incident."
Expressing similar view, Cuttack DCP Akhileswar Singh said the DGP has not given any written directive to him. "If we get an instruction, we will look into different angles of the matter," Singh added.
The DGP's clarification came following reports in media that the CM had directed him to investigate the matter.
On December 20, Nayak was seen among top VIPs in the BCCI Box of Barabati Stadium during the T20 match.
Also Read: Chit fund accused Subhankar Nayak seen in BCCI Box during India-Sri Lanka T20
The BCCI Box is reserved for top class officers, ministers, sports persons and OCA members and only those with VVIP passes.
Nayak, who was arrested by CBI on November 18, 2014 for his alleged links with Seashore Group, was granted conditional bail by High Court in August 2017. It was alleged that Nayak acted as a middleman between the Seashore Group and influential persons in the State. His diary had also mentioned names of some top class bureaucrats during the raids by CBI.