The Economic Offences Wing (EOW) of the Odisha Crime Branch has arrested the director and promoter of a chit fund company from Gwalior in Madhya Pradesh on the charge of duping investors to the tune of Rs 10 crore.
The accused identified as Babu Singh Kushwaha, the director and promoter of Auroxa Deal Multitrade (OPC) Private Limited, was later produced in a local court and was brought to Odisha on transit remand by the agency.
Kushwaha has been arrested based on the inquiry conducted by EOW on a petition filed by one Chandra Kanta Dash and others against the director and promoters of the chit fund company.
The complainants had alleged that the company had duped nearly 500 depositors by promising lucrative returns on their investments in various schemes.
Preliminary investigations reveal that the company was registered in Gwalior during May 2019 and was operated by Kushwaha as its sole director.
The company was engaged in direct selling of various household items, electronic goods. It had assured high returns and attractive cash back on investments through lucrative schemes.
Notably, Auroxa Deal Multitrade (OPC) Private Limited was operating from a rented building near Suraj Hotel in Baleswar district in 2019-2020. It is alleged that the company had collected Rs 10 crore from 500 depositors in the State, the EOW said.