Home CRIME Odisha court awards 5-yr jail term to chit fund firm heads

Odisha court awards 5-yr jail term to chit fund firm heads

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Odisha Sun Times Bureau
Bhubaneswar, Sep 25:

A court in Odisha’s Khurda district today sentenced two persons to five years imprisonment for defrauding people through their chit fund firm East Coast Mutual.

man in jail

Pronouncing the judgment, court of chief judicial magistrate (CJM) awarded five years imprisonment to ponzi firm MDs Prabhat Nanda and Rabeya Begum. Besides, the court also imposed a fine of Rs 50, 000 on the duo.

As per reports, the duo had raised money through their chit fund company assuring the gullible investors of lucrative returns. They had collected over 10 crore from the depositors.

One Ahmed Khan had filed a complaint with police of defrauding him of Rs 1.50 lakh following which they were arrested in 2013 under Prize, Chit and Money Circulation (Banning) Scheme Act 1978A. Besides, the company duped around 4,000 depositors in Kerang area of Khurda district.

Khan had registered complaint against Pravad Nanda, Rabeya Begum, Sultan Rajiya and Rafeeq Khan.