Raids on various chit fund and non-banking institutions in Ganjam and Gajapati districts have been intensified for the last one week.
As per the information available, the Gajapati police have been raiding the offices of these institutions since last two days and have so far seized valuable documents showing transactions worth crores of rupees.
The raided institutions included Vision India of Seranga under Gumma block, Millan and Millan of Om Shanti Colony and Micro Finance of Jena Tota Street of Parlakhemundi on Friday and Saturday last.
Managing Director of Millan and Millan Ratnakar Nayak and Managing Director of Micro Finance P Chandra Sekhar Rao were arrested. Both the non-banking institutions have reportedly collected investments of crores of rupees from gullible people by luring them with promise of lucrative interest rates. Being directed by Gajapati SP Charan Singh Meena and the Paralakhemundi SDPO, the police team raided the institutions and arrested their MDs.
Meanwhile, the Bhanjanagar police in Ganjam district have raided the offices of ten out of more than two dozens of such fraud institutions on Friday and Saturday last. The companies included Incore E-Services limited. This firm, however, said to have produced some documents of SEBI to the police which are being examined, sources said.
Apprehending raids and police action, several chit funds and non-banking financial institutions which were operating in Bhanjanagar, Bellaguntha and Jagannath Prasad in Ganjam district have locked their offices. The Bhanjanagar police are preparing a confidential list of such fraud non-banking institutions on which action would be taken soon, said Bhanjanagar SDPO Ramesh Sethi.
Similarly, a case has been registered against two non-banking firms, Artha Tatwa and Right Max, in the Chhatrapur police station. It may be mentioned that after collecting huge funds from the local public, Artha Tatwa company office at Chhatrapur has remained closed since December last.
Debaraj Sahoo of village Kanamana who had deposited Rs one lakh in that Artha Tatwa office a year back has now filed an FIR against the company at the Chhatrapur police station, and the investigation in the case is on, sources said.