Home ODISHA LATEST ED to seek Odisha chit fund company chief’s remand

ED to seek Odisha chit fund company chief’s remand


Reported by Santosh Jagdev

Bhubaneswar, Sep 7:

The Enforcement Directorate (ED) is likely to take Pradip Sethy, the CMD of Artha Tatwa (AT) group, on remand to interrogate him in connection to the multi-crore chit fund scam in Odisha.

Pradip Sethy, AT Group chief
Pradip Sethy, AT Group chief

The ED , informed sources said, is likely to pray before the court for a remand order to get Sethy in their custody soon. Sethy is back at the Jharpada jail after a special CJM court of the CBI rejected his bail plea along with that of  AT Group’s accountant Srikrushna Padhi yesterday.

However, the ED wants to question him on the money trail and track crores of rupees that  the company had collected from lakhs of gullible investors in the state, sources said.

The ED, which is inquiring into the money trail, would seek information from Sethy on the investments made in and outside the state, sources added.

The Jharpada jail authorities have tighened Sethy’s security and placed him in ward number- 15 to ensure he stays away from the other two directors of AT Group, Sambit Khuntia and Jyotiprakash Jaiprakash as well as the AT accountant Padhi, jail sources said.

Meanwhile, the CBI is now focusing on the evidence gathered about the involvement of certain influential ruling party politicians and bureaucrats who facilitated the fraudulent operations of the AT Group.

Following media reports that Sethy had invested Rs 1.65 crore in Theme Creatives Private Limited, an advertising agency promoted by Sanjay Dasburma, a person called Balabantaray and a minister through Bikash Swain, proprietor of an Odia daily, the CBI team has reportedly grilled Swain today on the role and involvement of politicians in the matter.

The CBI has also interrogating Ranjan Dash, co-founder of the Artha Tatwa (AT) Group and founder of Swastik India Multi-State Cooperative Agency, on the transactions, deals and investments made by the chit fund company.


  1. The Enforcement Directorate (ED) is likely to take Pradeep Sethy, on remand to interrogate him and would question him on the money trail and track crores of rupees that the company had collected from lakhs of gullible investors in the state. I hope now no politician and bureaucrat can escape who ever was benefited by Arta Tatwa Group of Companies directly or indirectly. Some politicians have showed their cleverness by getting valuable gifts like car, flats, jewelry etc through their servants, drivers and relatives but now they may not escape from CBI investigation.


    “Money trail”, is a catch phrase used to describe any evidence that money, or their equivalents, were passed between two parties. Money trails are left behind when funds are passed through something called a money loop. Unlike money laundering, that tries to wash funds to make them appear clean, money loop funds tend to start clean. However, they become dirty because they were used for a questionable purpose. The term dark money refers to funds that may have been passed into a money loop and not reported to election committees and voters. Both money laundering and a money loop leave a money trail.

    Money trail is associated with the phrase “Just follow the money trail”. This essentially means if you want to look for the motivation behind an action, look to see who stood to profit. A political scandal involving the President of the United States in the 1972 helped make the phrase famous when two reporters following a trail of clues uncovered the Watergate scandal.

    A money loop involves the flow of money in both directions. One party tends to want something from the government, and an official wants something in return. This is also called akickback. Money loops are different than other forms of political corruption. Political corruption when an outright demand for money is made, is called pay to play. Either you pay the money or can’t get a building permit, license etc.. Political corruption that allows an illegal activity is called making a bribe or paying protection money.

    Money loop can also be traced to political corruption in the United States. A loop hole is a legal technicality that allows a questionable practice to continue. A supposed loop hole in campaign laws in the 1990s and early 2000s allowed an unlimited funding of political campaigns using issue only ads. The money to pay for the advertisement is termed soft money. The sponsors claimed their ads were legal since they didn’t mention one of the eight magic words. The combined phrase soft money loop hole was shortened to just money loop.[1] During the 2012 elections another supposed loop hole called the independent expenditure allowed unlimited funding into campaigns a second time.

    Politicians and the money loop
    Politicians have the ability to influence governmental spending, its actions and its failure to act. There are many clear legal ways to interact and influence politicians including:
    • Writing a letter, or sending an e-mail;
    • Lobbying for legislation and changes;
    • Making a campaign contribution;
    • Volunteering to help a candidate get elected;
    • Donating to a candidate’s party.

    Within certain limitation, in many countries these types of interaction between the people of the country and the government is encouraged. However, when citizens exceed the law of the land many countries react swiftly. This helps these countries ensure their governments are for the people. In the words of former US Supreme Court Justice John Paul Stevens:”In a functioning democracy the public must have faith that its representatives owe their positions to the people, not to the corporations with the deepest pockets.”
    (copied from the free encyclopedia).


  2. Enforcement Directorate (ED)

    The Directorate General of Economic Enforcement is a law enforcement agency and economic intelligence agency responsible for enforcing economic laws and fighting economic crime in India. It is part of the Department of Revenue, Ministry of Finance. It comprises officers of the Indian Revenue Service. It was established on the 1st day of June, 2000 by the Central Govt. of India to investigate provisions of the Foreign Exchange Management Act, 1999.

    The prime objective of the Enforcement Directorate is the enforcement of two key Acts of the Government of India namely, the Foreign Exchange Management Act 1999 (FEMA) and the Prevention of Money Laundering Act 2002 (PMLA)
    The ED’s (Enforcement Directorate) official website enlists its other objectives which are primarily linked to checking money laundering in India.

    Organizational Set Up
    The ED was commissioned with its headquarters at New Delhi and has ten zones at Mumbai, Kolkata, Delhi, Chandigarh, Chennai, Ahmedabad, Bangalore, Lucknow, Cochin and Hyderabad. Each of these zones are headed by the Deputy Directors.Officers are drawn from the Income Tax and Customs departments. Besides, there are nine sub-zones at Indore, Agra, Srinagar, Jaipur, Varanasi, Calicut, Hyderabad, Guwahati Panjim which are headed by the Assistant Directors. Moreover, there are three Special Directors of Enforcement and one Additional Director of Enforcement and two Deputy Director at Head Office.

    Special courts
    For the trial of an offence punishable under section 4 of PMLA, the Central Government (in consultation with the Chief Justice of the High Court), designates one or more Sessions Court as Special Court(s). The court is also called “PMLA Court”. Any appeal against any order passed by PMLA court can directly be filed in the High Court for that jurisdiction.


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