Chitfund manager arrested

Kendrapara: A manager of a chit fund was arrested from here even as reports of fraud by bogus non-banking financial companies trickled in from various pockets of Kendrapara and Jagatsinghpur districts.
After DP finance, another chit fund Artha Tatwa (AT) has disappeared cheating investors in Kujang (Jagatsinghpur) and Pattamundai (Kendrapara) to a tune of Rs 20 crore, police said.
"Madan Mohan Swain, branch manager of Golden Lion (a chit fund) operating in Chabdol area under Kendrapara rural police jurisdiction, was taken into custody yesterday on charge of cheating investors," said Kendrapara Rural police station Inspector, Tapas Kumar Pradhan.
The accused booked under various sections of the Indian Penal Code was remanded to judicial custody, he said.
As interest return in savings account promised was as high as 30 per cent per annum, people from rural areas invested for quick return. Fraud by the bogus firm is to the tune of Rs 50 lakh and we are searching for another executive of the company, who is absconding, Pradhan added.
Fraudulent practices committed by bogus NBFC – Artha Tatwa (AT)- has been reported in Kujang area near Paradip port township. While the investors lodged complaint in similar frauds reported elsewhere, its the agents who have brought the act of cheating to the notice of local police, said Jagatsinghpur Superintendent of Police Satyabrata Bhoi.
Cases had been registered in this connection and the economic offence wing of state crime branch also informed of the chit fund fraud for expedition of investigation, he said.
The bogus NBFC had lured the gullible investors from rural hinterland and crores of rupees were collected from investors through local agents.
While Kujang branch AT lured customers from Paradip and Erasama area, investors of Pattamundai in Kendrapara district have lodged an FIR with the local police alleging cheating the by bogus firm.