EOW arrests Odisha head of Rs 1,000 crore pan-India scam; 12,000 investors duped in state

The Economic Offences Wing (EOW) of Odisha Police, on Saturday, arrested Pratap Kumar Rout, the state head of a multi-state investment firm, for allegedly defrauding thousands of investors across India.

According to sources, the company is accused of running a massive Ponzi-style scheme that collected over Rs 1,000 crore from more than 3 lakh depositors in ten states, including Rs 139 crore from over 12,000 investors in Odisha.

Rs 92 Lakh Lost Over False Promises

Sources cited officials of the EOW, who said that the case originated from a complaint by Bijay Kumar Panigrahy, who alleged that he invested Rs 92.6 lakh, his retirement savings, in a fund after being convinced by Pratap Rout to expect monthly returns of 11 to 18%.

Rout, posing as the Odisha coordinator, claimed the fund was invested in the foreign exchange market and was personally verified by him.

Panigrahy made multiple deposits using account numbers shared by Rout. However, the company abruptly stopped functioning, blocking withdrawals and shutting down communication. Despite repeated assurances, the accused failed to return the money.

Ponzi Modus Operandi Exposed

Investigations by the EOW revealed that the firm was registered with the Registrar of Companies in Goa in 2023.

It reportedly operated in Andhra Pradesh, West Bengal, Assam, Madhya Pradesh, Uttar Pradesh, Rajasthan, Gujarat, Tamil Nadu, Delhi, and Odisha.

The company lured depositors through promotional meetings in Cuttack and Bhubaneswar, promising high monthly returns and secure investments. Initially, small interest payouts were made to gain trust before the operators suddenly shut down operations and disappeared.

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EOW sources said Rout acted as the chief fund collector in Odisha, operating multiple bank accounts, some in third-party names, to gather deposits both through formal channels and hawala networks. He frequently changed accounts to evade detection and also handled large sums in cash.

As of the last reports, the investigation is ongoing to trace the money trail and identify other accomplices and entities linked to the fraud.