Three arrested for defrauding man of Rs 20 crore

Bhubaneswar: Police on Thursday arrested three persons on charges of fraud to the tune of Rs 20 crore.

Police said Aditya Sponge Iron company’s chairman Niranjan Pradhan and its directors – Arun Swain and Sanatan Swain – have been arrested based on a complaint lodged by one B Prusty.

In 2008, Prusty, owner of a mineral trading company, lodged a complaint with Nayapalli police alleging that the owner of Aditya Sponge, one Chittaranjan Mallick, had offered to sell his company for Rs 30 crore.

Through an agreement, Prusty had paid Rs 10 crore as initial deposit and agreed to pay the rest once the deal was sealed. However, Mallick remained incommunicado therefter and Prusty approached police as he could not get the advance amount back.

In December last, Mallick was arrested. In the meantime, he had fraudulently transferred the ownership of the plant to Pradhan. All the accused have been forwarded to the court, police said.