Bhubaneswar, Aug-14: The economic offence wing (EOW) of the crime branch on Wednesday arrested directors of four chit fund companies for duping crores of rupees from their investors in the city, Crime Branch DIG Rajesh Kumar said.
Those arrested are Biswanath Behera, Trilochan Hota, Rabindra Barik and Jyotirmay Pradhan. Investigations were on to get more information about the fraudulent transactions and other links of the accused, Kumar said. “They have fraudulently collected over Rs 2.5 crore from investors,” he said.
The arrests followed complaints filed by nearly 60 investors against the four between June 20 to June 22 this year.
The four, who were running four companies in the city – Utkal Bharati Trading House, Utkal Nirman, Sanjog Marketing and Shree Utkal Bharati – joined hands to open Utkal Bharati Trading House in 2000 and subsequently opened three other chit-fund companies. They continued to run their companies till 2010 at Saheednagar and Mancheswar. The accused are all the residents of the city.
A case has been registered against these accused under section 406, 420, 465, 467, 468, 471, 120B of IPC and under the prize chits and money circulation schemes (Banning) Act, 1978.