Home STATE CITY Odisha chit fund scam: realtor arrested for Rs 50 cr fraud

Odisha chit fund scam: realtor arrested for Rs 50 cr fraud

0
SHARE

Reported by Santosh Jagdev
Bhubaneswar, May 29:

The Economic Offences Wing (EOW) of Odisha Crime Branch (CB) has arrested Subhransu Singh, the managing director (MD) of a construction company named Sribhumi Constructions, for allegedly cheating investors in Khordha and Puri districts of at least Rs 50 crores after promising them double the amount on their deposited money.

Subhranshu Singh after his arrest by EOW (OST Photo)
Subhranshu Singh after his arrest by EOW
(OST Photo)

Singh was arrested by CB officials during a raid at his residence in Jayadev Vihar here in the city late on Thursday night.

CB officials said Singh began his fraudulent business from his office at his Jayadev Vihar residence in 2011 and started a construction company. He later went on to open branch offices of the company in several other places.

After some months, he started collecting small deposits in the name of the company from investors in Khordha and Puri districts by floating various schemes. He promised gullible investors to double the amount on their deposited money, the CB officials added.

The accused later shut down all his offices after the Supreme Court handed over the chit fund scam cases to the CBI for investigation.

The EOW registered a cheating case against the accused and company in January this year after acting on the complaints lodged by a group of duped investors.

“Acting on the complaints filed by a group of depositors from the districts, we arrested Singh from his residence late on Thursday night,” said a CB official, adding, he would be forwarded to a designated court in Cuttack today.

Singh would be taken on remand for interrogation, the official said.

EOW is on the lookout for other directors of the company, which is learnt to have invested the depositors’ money in the share market, sources in the agency said.