Four directors of a chit fund company were arrested from Khairagarh in Chhattisgarh's Rajnandgaon district on charges of alleged cheating, police said on Monday.
The action followed a directive of Chief Minister Bhupesh Baghel, a police statement said.
Four directors of Sarvoday Multi-trade Co Ltd -- Rajkumar Sahu, Kamlesh Sahu, Satyapal Verma and Chhamman Sahu -- were arrested on a written complaint of Khilavan Chandrakar, who had lost money to the company.
The chit fund company, through monthly, fixed deposit and other schemes, had taken Rs 7.30 lakh from Chandrakar. Through him, they got deposited Rs 18 lakhs of various individuals in the chit fund company.
In all, the chit fund company had collected Rs 25 lakh, the statement said.
The company's Chief Managing Director, Tarun Sahu, is on the run along with three directors: Tarun Sahu, Ranjeet Sonkar (of Balaghat, Madhya Pradesh) and Rajedra Swasi (Ranchi). Police have launched a manhunt for them.
The arrested directors told the police that all company related documents were with Tarun Sahu.