Chit fund scam: Micro Finance Ltd chief gets 3-year jail
Bhubaneswar: A special CBI court in Bhubaneswar on Tuesday sentenced Durga Prasad Mishra, group chief of chit fund firm Micro Finance Ltd, to 3-year imprisonment after he pleaded guilty to defrauding investors of their money.
The court has also directed Mishra to pay a compensation of Rs 215 crore failing which the properties of Micro Finance Group would be attached, sources said.
Mishra was arrested by the CBI on December 2014 on charges of duping investors of at least Rs 500 crore by floating six companies in the state that includes Micro Leasing and Funding, Micro Hotels, Micro Constructions, Micro Hospitals and Micro Media.
Earlier, the court had sentenced Ashok Pattnaik, another director of Micro Finance Group to three and half years of imprisonment and directed him a compensation of Rs 105 crore.
The company had 420 branches across the country, many of which were sealed following the police crackdowns. As such, total 13 cases were registered against the company in 2013, sources added.