Bhubaneswar: A major chit fund scam was unearthed in Balasore district where a company allegedly collected Rs 10 crore from over 500 investors by promising them high returns before it went bust in the wake of Covid pandemic in 2020. The economic offences wing (EOW) of the state Crime Branch has begun a probe following complaints by some duped depositors recently.
Auroxa Deal Multitrade Pvt Ltd, the sham money circulation company, was registered with the registrar of companies at Gwalior in Madhya Pradesh on May 23, 2019. Its office had been functioning from a hotel room at Sahadev Khunta in Balasore district. The company allegedly lured investors by promising high rate of interest on their deposits and collected around Rs 10 crore between May 2019 and March 2020.
EOW said Babu Singh Kushwaha was the director of the company whereas Sarat Kumar Nayak and Prabhat Ranjan Das held the posts of promoters. The probe agency, which had launched a manhunt to arrest the three, said the company ran the illegal money circulation business in the guise of a direct selling multi-level marketing unit.
The company was promoting a pyramid structure of investment wherein a new entrant would deposit money in the account of an up-line member which will pass through different levels to the company’s account. “The company offered household appliances and electronic gadgets, including LED television sets and grinders to its depositors,” an EOW officer said.
The company distributed brochures in…
Auroxa Deal Multitrade Pvt Ltd, the sham money circulation company, was registered with the registrar of companies at Gwalior in Madhya Pradesh on May 23, 2019. Its office had been functioning from a hotel room at Sahadev Khunta in Balasore district. The company allegedly lured investors by promising high rate of interest on their deposits and collected around Rs 10 crore between May 2019 and March 2020.
EOW said Babu Singh Kushwaha was the director of the company whereas Sarat Kumar Nayak and Prabhat Ranjan Das held the posts of promoters. The probe agency, which had launched a manhunt to arrest the three, said the company ran the illegal money circulation business in the guise of a direct selling multi-level marketing unit.
The company was promoting a pyramid structure of investment wherein a new entrant would deposit money in the account of an up-line member which will pass through different levels to the company’s account. “The company offered household appliances and electronic gadgets, including LED television sets and grinders to its depositors,” an EOW officer said.
The company distributed brochures in…
