Odisha: EOW arrests MD of chit fund company for duping investors on pretext of high rate of interest

Bhubaneswar (Odisha) [India], September 7 : Bhubaneswar Economic Offences Wing (EOW) on Monday arrested the Managing Director (MD) of a chit fund company for allegedly duping a large number of investors on the pretext of returning a high rate of interest on investment in different deposit schemes floated by his company.
As per a press release, MD of Welfare Buildings and Estate Pvt Ltd Vijay Prasad, who allegedly duped people of crores of rupees, was apprehended by EOW from his residence in Visakhapatnam.
Prasad was produced before the chief metropolitan magistrate of Visakhapatnam on Monday and was produced before the Court of OPID in Cuttack today after he was brought on transit remand.
The investigation conducted so far has revealed that the said chit fund company was initially registered with ROC, Hyderabad and subsequently changed to Kolkata during the year 2011, having its head office at Visakhapatnam and registered office at Kolkata.
During the period 2009 to 2014, the company was operating its branch offices in Odisha at Bhubaneswar, Narsinghpur (Cuttack) and Nayagarh.
It has been ascertained that the company represented through its MD (the present accused) and others allured general public with the false promise of returning high rate of interest on deposits under different schemes of the company and unauthorisedly collected huge amount to the tune of crores from a large number of investors and absconded from the locality after closing their offices.
Further investigation of the case is in progress.