The Economic Offences Wing (EOW) of the Odisha Crime Branch has arrested the director and promoter of M/s Auroxa Deal Multitrade (OPC) Pvt Ltd, a ponzi firm on the charges of duping investors to the tune of Rs 10 crore.
The accused, identified as Babu Singh Kushwaha, has been arrested from Gwalior in Madhya Pradesh on February 13. He is being brought to Odisha on the basis on a transit remand.
Kushwaha has been arrested based on the inquiry conducted by EOW on a petition filed by one Chandra Kanta Dash and others against the director and promoters of M/s Auroxa Deal Multitrade (OPC) Pvt Ltd. The complainant had alleged that the Company had duped nearly 500 depositors by promising lofty returns on their investments through various schemes.
Preliminary investigations reveal that the Company was registered in Gwalior during May 2019 and was operated by Kushwaha as its sole director.
The Company was engaged in direct selling of various household items/ electronic goods. It had assured high returns and attractive cash back on investments through lucrative schemes. However the deposits collected by the Company under direct selling were fake as it amounts Ponzi schemes and binary schemes. The business model of the Company is a simple pyramid structure. It worked as binary scheme in which early entrants earn money and as the number investors/depositors increases, the scheme collapses at a point of time, the EOW said in a release.
It is pertinent to mention here that M/s Auroxa Deal Multitrade (OPC) Pvt Ltd was operating from a rented building near Suraj Hotel in Balasore district in 2019-2020. It is alleged that the Company had collected Rs 10 crore and as many as 500 depositors in the State have been duped.