Police arrested two more in Rs 10 cr chit fund fraud
Police arrested two more in Rs 10 cr chit fund fraud
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Bhubaneswar: The Economic Offences Wing (EOW) of the Odisha Crime Branch arrested two Upper Line members from their respective residences in Odisha's Balasore district on Thursday, four days after Director and Promoter of M/s Auroxa Deal Multitrade (OPC) Pvt. Ltd. Babu Singh Kushwaha was apprehended from Gwalior.
Sarat Kumar Nayak and Prabhat Ranjan Das, who were arrested, have been recognised.
All three defendants were brought before the Designated Court in Balasore under the OPID Act, which remanded them in judicial detention.
On the basis of a complaint filed by Chandra Kanta Dash and others, a case was registered against Kushwaha and the two others under Sections 406, 420, 467, 468, 471, 120 B of the IPC, Section 66 of the IT Act, Sections 4, 5, 6 of the PCMCS (Banning) Act, and Section 6 of the OPID Act.
Kushwaha was the sole director of M/s Auroxa Deal Multitrade (OPC) Pvt. Ltd., which was registered with the ROC, Gwalior, in May 2019. The company had introduced a number of lucrative schemes/packages that encouraged direct marketing of various household/electronic goods in exchange for high returns and cashback rewards.
The company's deposits gathered under the guise of direct marketing are nothing more than Ponzi and Binary Schemes. The business model is a simple pyramid structure that functions as a binary scheme in which early entrants profit and the scheme eventually collapses as the number of investors/depositors grows. As a result, the deception and fraud are hidden behind the guise of direct selling marketing and company, according to the release.
From 2019 to 2020, M/s Auroxa Deal Multitrade (OPC) Private Limited operated in a rented building near Suraj Hotel, Sahadevkhunta, Balasore, where Kushwaha and other company promoters encouraged newcomers/investors to join various business packages and collected large deposits from the general public.
The business had taken more than Rs 10 crore from 500 investors before defrauding them.
The problem is being looked into further, according to the statement.
