The Kendrapada Sadar police on Monday arrested manager of Mundala-based Golden lion, a private financial institution. Madan Swain, from his village Mundala under the Chandol police outpost on the charge of cheating lakhs of rupees after luring members of several SHGs and other locals to provide them double amounts of money after 35 months of their deposits.
Swain was booked under Sections 420, 506 and 34 of IPC and produced before the SDJM Court of Kendrapada, from where he was remanded to jail custody after his bail plea was rejected.
Being lured by the promises of Swain and company chairman Gyana Ranjan Routray, several SHGs and locals opened their accounts and deposited money with the institution. After collecting more than Rs 15 lakh, the accused closed down their office. When the duped investors demanded return of their money after the maturity period, the manager threatened them with dire consequences.
Maa Mangala Chandi Self-Help Group secretary Sanjukta Mallick, who had deposited Rs 1.20 lakh with Golden lion, lodged an FIR at the Kendrapada Sadar police station against Swain and Routray. The police registered a case and arrested Swain.