BHUBANESWAR: The Economic Offences Wing of the Crime Branch on Friday arrested the managing director of a non-banking financial company (NBFC) on charges of duping nearly 500 persons of Rs. eight crore.
The arrested MD, Braja Sundar Mishra, owned two companies, Land India Real Estate Private Limited and Land India Assets Limited, which were engaged in real estate business in Ganjam district.
The two companies had collected around Rs. eight crore from a number of depositors from different districts between 2009 and 2011.
Mishra ran his business from two locations in Nayapalli here by floating various schemes such as double return, monthly income and recurring deposit with an assurance of high returns. Both the offices were shut in July 2013.
The accused and some of his associates had promised the investors to double their deposits within three years. However, a majority of the investors did not receive any returns on their deposits, said Sanjay Kumar, DIG EOW.
“Mishra paid returns to some of his initial depositors by circulating the money of new customers, which lured the former to invest more in the companies,” said Kumar.
The EOW sleuths recovered several incriminating documents from Mishra, who was arrested from his residence at Patia under Mancheswar police limits here.
Two more directors of the companies have been identified and will be arrested soon, Kumar said. Mishra was produced in a local court and remanded to judicial custody.