Cuttack: The Economic Offences Wing (EOW) of Odisha Police today arrested a man from 42 Mouza in Cuttack for allegedly duping investors by promising high returns on deposits in a fake forex trading scheme.

The accused, identified as Pratap Kumar Rout, was arrested based on a complaint lodged with the EOW on October 14, 2025. He was produced before the Designated Court under the OPID Act in Cuttack.

As per the complaint filed by Bijay Kumar Panigrahy, Rout persuaded him to invest his retirement savings amounting to ₹92.6 lakh in Hedgex Fund LLP, claiming it offered monthly returns between 11% and 18%. Rout reportedly introduced Panigrahy to the firm, assuring him that the company legitimately traded in the forex market and was not a money-rotation scheme.

However, soon after Panigrahy invested through the bank accounts provided by Rout, the company stopped operations, blocking access to the funds. When approached, Rout, who acted as the Odisha Head of Hedgex Fund, allegedly gave false assurances about returning the money.

EOW sources revealed Rout worked as a local coordinator and fund collector for Hedgex Fund LLP, operating multiple bank accounts to collect deposits both through banking channels and in cash, including via hawala agents. He also organised promotional meetings in Cuttack and Bhubaneswar to attract investors.

After collecting crores of rupees, the company abruptly shut down. When depositors demanded their money back, Rout claimed he was in touch with Dinesh Kumar Jain, a designated partner of Hedgex Fund LLP, regarding refunds.

Modus Operandi

According to investigators, the fraud followed the typical ponzi scheme model, small returns were initially paid to gain investors’ trust, followed by large-scale collections and eventual disappearance of the operators, who cut off all communication.

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The probe revealed Hedgex Fund LLP, registered with the Registrar of Companies (ROC), Goa in 2023, operated across 10 states namely, Andhra Pradesh, West Bengal, Assam, Madhya Pradesh, Uttar Pradesh, Rajasthan, Gujarat, Tamil Nadu, Delhi, and Odisha with a depositor base exceeding three lakh people. The total defrauded amount is estimated at over ₹1,000 crore, including ₹139 crore from more than 12,000 investors in Odisha.

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Investigators further found Hedgex floated several sister concerns, including Kaushalaya Foundation, Lavya World, Frix Market, and Lavya International, to mislead investors and conceal the money trail. The accused and other top members used multiple mule and third-party bank accounts, while hawala operators were engaged to handle the collected cash.

The EOW has seized several incriminating documents from Rout’s possession, and further investigation is underway.