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Odisha: Two more arrested in Rs 10 crore chit fund fraud

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Two upper line members of a chit fund firm were arrested. (Photo credit: Pixabay)

Bhubaneswar: The economic offences wing (EOW) of the Odisha Crime Branch has arrested two more accused in the Rs 10 crore chit fund fraud case, officials said on Thursday.

Sarat Kumar Nayak and Prabhat Ranjan Das, upper line members of the chit fund firm Auroxa Deal Multitrade (OPC) Pvt Ltd, were arrested from their residences in Balasore district, reported IANS.

On February 13, Babu Singh Kushwaha, the chit fund company director and promoter was arrested by the EOW from Gwalior in Madhya Pradesh.

During investigation, the EOW found that the company Auroxa Deal Multitrade (OPC) Private Limited was functioning in a rented building in Balasore town of Odisha during the year 2019-2020.

The deposits collected by the company are nothing but ponzi schemes and binary schemes.

The business model of the firm is a simple pyramid structure, works as a binary scheme in which the early entrants earn money and as the number of investors increases, the scheme collapses at a point of time, the EOW officials said.


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CityBuzz Click Staff

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