The Economic Offences Wing (EOW) of the State Crime Branch (CB) on Monday arrested Khirodh Mallick, chief of Sambalpur-based NGO Biswa from Sambalpur on the charge of defrauding depositors of Rs10 crore.
Mallick, brother of Binjharpur BJD MlA and former Minister Pramila Mallick, was running his NGO on the lines of a chit fund company for several years.
“Despite an embargo imposed by the RBI in June this year, Mallick had raised crores of rupees from depositors through various wings of his NGO,” said CB DIG Rajesh Kumar.
The EOW had registered a case against the Biswa three days ago. Mallick would be taken from Sambalpur to Bhubaneswar for interrogation on Tuesday.