Managing director of the A-One Group of Companies Arup Nanda, who was arrested by the Odagaon (Nayagarh) police from the Khandagiri area in Bhubaneswar late on Saturday night, was remanded to judicial custody on Sunday after the court rejected his bail plea.
According to police sources, Nanda had opened the A-One Group of Companies at Nuagaon under the Khandagiri police limits in Bhubaneswar in 2011. He later opened branches of the company at Nayagarh, Godipada, Odagaon, Tangi and Jagannathprasad.
The company had promised an assured return of 21-per cent interest for people who invest their money. lured by the offer, people deposited their money. However, the company suddenly closed its Odagaon branch office in March this year.
The worried investors then wanted refund of their money and approached the company agents but in vain.
On November 13, one Sabita Martha from Godipada lodged an FIR with the police alleging that the company had swindled over Rs30 lakh from the people of Godipada.
Acting on the complaint, the police registered a case against Nanda, his wife and director of the company Mina Nanda, branch manager loknath Patnaik and area manager Munna Pradhan. A case was also registered against Arup Nanda with the Khandagiri police.
Though the police managed to arrest branch manager Patnaik, it had failed to nab the other accused, who went into hiding, police sources said. However, the police finally arrested Arup.