NGO fleeces poor villagers of lakhs promising employment, small-business assistance in Odisha’s Rayagada

A wave of fraud allegations has rocked Rayagada town after scores of people accused a local NGO of cheating them under the pretext of offering jobs and project participation.

According to reports, the organisation in question, Sunshine Multimedia Academi & Rural Development Action (SMARDA), is alleged to have collected lakhs of rupees from hopeful individuals, promising employment, training, and small-business assistance, but later disappeared without fulfilling any commitments.

Victims Left in Tears and Debt

Parbati Sahu from Komtalpeta of Rayagada district is among the worst-hit victims. In extreme agony, she recounted how she lost over Rs 8 lakh to the NGO.

She added that their modus operandi involved luring aspiring entrepreneurs like her and promising them facilities for a business setup. Initially, they would ask for loan money, claiming that it was a part of an initial investment, but they would reportedly vanish soon after.

Another woman, Nutan Verma, revealed that she was lured with the offer of becoming a partner in a project. The NGO even facilitated a bank loan in her name and supplied a low-cost incense stick machine. However, they allegedly absconded with the remaining funds, leaving her in financial ruin.

“They facilitated loans for me under various government self-employment schemes, but disappeared after taking the money. I had to sell my plot to repay the bank, but I have found no trace of them ever since,” stated Verma.

ALSO READ: Online scamsters target rape survivor in Cuttack; Rs 1 Lakh duped on pretext of compensation assistance

NGO Operated from Rayagada, Then Vanished

According to several victims, SMARDA operated from a location near the CRPF Square in Rayagada.

Its head, Suryakanti Raut, reportedly gained people’s trust by offering training programs in tailoring and incense stick production and showing job prospects. Many paid substantial amounts, expecting stable employment. However, a few months later, the organisation suddenly shut down and left town.

To add to the worsening worries, several victims were even issued cheques by the NGO, but those cheques alleged bounced.

ALSO READ: Cuttack man duped of Rs 2.36 crore in online investment scam, fraudster arrested

Legal Action and Administration’s Silence

Despite submitting complaints at local police stations and even writing to the District Collector, the victims claim no effective action has been taken. They allege their pleas have fallen on deaf ears and accuse the administration of inaction.

Santoshi Senapati, Zonal President of the International Human Rights East India division, voiced strong concern over the growing number of fraud victims and the lack of response from authorities.

“People had lent the NGO money with lots of hope, but it vanished, leaving behind helpless victims in what appears to be a case of fraud,” said Senapati.

NGO Head Denies Charges, Files Counter-Complaint

In response, NGO chief Suryakanti Raut has denied all allegations, claiming that the accusations are baseless.

Speaking over the phone, he alleged that the complainants are lying and even went on to file counter-complaints against some of the victims, including Parbati Sahu.

“They (the complainants) have secured loans by mortgaging gold from me. I have all the required evidence and will use it to prove my innocence,” she said.

Meanwhile, attempts to get a comment from the current Superintendent of Police were unsuccessful. While he declined to speak on camera, he reportedly assured that an investigation would be conducted.