5 yrs jail term for East Coast chit fund bosses
Bhubaneswar: The court of chief judicial magistrate (CJM), Khurda today sentenced two bosses of East Coast Mutual Trust for Trade and Commerce, a chit fund company, to five years imprisonment for duping about 10 crore from the people in the district.
Pronouncing the judgment, CJM PM Samal awarded five years imprisonment to MD Prabhat Nanda and Rabeya Begum with a fine of Rs 50,000 each.
The court later remanded the duo to Khurda jail amid tight security.
The Khordha Town Police had arrested the duo from Bhubaneswar on November 5, 2013 under Money Circulation Scheme (Banning) Act, I978 following a complaint by Ahmed Khan, one of the investors, alleging that the company had defrauded him of Rs 1.50 lakh.
Police had later forwarded them to the court.
The ponzi company had opened its office at Keranga village in Khurda district and collected over Rs 8 crore from the people during the period.
Meanwhile, the police is in the hunt for Sultana Raziya and Rafiq Khan, the two absconding officials of the chit fund company against whom the investors had filed a complaint with the police.