BHUBANESWAR: The Economic Offences Wing (EOW) of Crime Branch on Thursday arrested two employees of Madhya Pradesh-based ponzi firm, Auroxa Deal Multitrade Private Limited, for allegedly duping around 500 investors across Odisha to the tune of Rs 10 crore. The accused Sarat Kumar Nayak and Prabhat Ranjan Das, both natives of Balasore district, were arrested from their residences in connection with a case registered by the agency on January 31 this year.
The director and promoter of Auroxa Deal, Babu Singh Kushwaha, was apprehended by EOW officers from Madhya Pradesh on February 13 and brought to Balasore on transit remand. During investigation, EOW officers ascertained that Auroxa Deal is registered with the Registrar of Companies in Gwalior and started its business in Balasore in May, 2019.
The ponzi firm had offered a scheme to the investors under which they had to deposit Rs 25,000 and purchase an electronic item like a smart TV or an IoT-enabled fan. The depositors were given cashback everyday, apart from weekends, and they had the autonomy to sell the electronic products.Auroxa Deal also offered commission to the depositors for inviting new investors to be a part of its schemes one of which involved depositing Rs 20,000 with the promise of higher returns every year.
“Initially, Auroxa Deal provided cashback to the investors who had purchased electronic items and also provided higher returns to the depositors. However, the firm shut its operations in Balasore in March, 2020 after collecting money from hundreds of investors,” said a senior EOW officer. Most of the duped investors are natives of Balasore, Mayurbhanj and Bhadrak districts.
As per guidelines on direct selling, entities and sellers are prohibited from promoting a pyramid scheme or enrolling any person to such scheme or participating in such arrangement under the garb of doing direct selling business.