Odisha EOW Arrests 2 More Accused In Rs 10 Crore Ponzi Fraud

The Economic Offences Wing (EOW) of Odisha Crime Branch has arrested two upper line members of a chit fund company in connection with a fraud to the tune of Rs 10 crore. 

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.