BHUBANESWAR: The Central Bureau of Investigation (CBI) on Tuesday arrested two top executives of Midas Touch Group of Companies from Gujarat as part of its probe the multi-hundred crore chit fund scam in Odisha.
Managing Director Soubhagya Kumar Samal and Director Nirupama Samal were on the run ever since a case was registered against them by investors in 2013.
On the strength of non-bailable warrants issued by the Special CJM (CBI), Bhubaneswar, the probe agency tracked down both and arrested them from Gotri in Vadodara district of Gujarat with the help of Vadodara Police, an official spokesman of the agency said.
The company, which was headquartered at Bhubaneswar, is accused of cheating close to Rs 17 crore from the investors.
When the CBI took over investigation in 2014, it had registered a case against Soubhagya and Nirupama as well as nine others under sections 120-B, 406, 420 & 34 of IPC and Sections 4/5/6 of Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
Last year on April 17, the investigating agency submitted a preliminary chargesheet against Soubhagya, Nirupama and two companies Midas Touch Assets and Securities Limited and Midas Touch Realtech Limited, based at Odisha. The chargesheet said that investors were cheated to the tune of Rs 16.88 crore as the company made a criminal breach of trust.
When the chit fund scam surfaced, cases were registered against the company in Angul, Dhenkanal and Ganjam districts. Midas Touch not only ran money circulation schemes but had made a foray into real estate, life insurance, healthcare, infrastructure development and entertainment sectors.
Midas Touch Assets and Securities was listed with the Registrar of Companies (RoC), Cuttack in 1995 through which the company mobilised deposits. Though it officially claimed to deal in real estate, life insurance and consultancy, Midas Touch Assets mostly dealt in finance schemes. As per the Registrar of Companies, the company’s authorised capital was Rs 22 crore and paid-up capital stood at Rs 15.5 crore.
Saoubhagya and Nirupama will be produced before a local court at Vadodara. The CBI spokesperson said it would seek transit remand to bring them to Bhubaneswar for production before court of Special CJM, (CBI).