BHUBANESWAR: The EOW of the Odisha Crime Branch has arrested the director of chit fund company Auroxa Deal Multitrade (OPC) Pvt Ltd Babu Singh Kushwaha from Madhya Pradesh for allegedly cheating over 500 investors to the tune of Rs10 crore. He was nabbed from Gwalior on Monday and is being brought to Bhubaneswar on remand.
The accused was nabbed following an inquiry on the basis of a complaint filed by Chandra Kanta Dash and others against the firm alleging that 500 depositors were duped by it with the false promise of high returns on their deposits.
The company under various lucrative schemes and packages promoted direct selling of various household and electronic goods having cashback offers. The deposits collected by the company under the cover of direct selling were nothing but ponzi and binary schemes, said a senior police officer.
During 2019-20, the firm was functioning in a rented building near Suraj Hotel at Sahadevkhunta in Balasore where the accused and other promoters of the company motivated people to join various business packages of the company and duped them subsequently. Further investigation into the matter is under progress.