Odisha Chit fund scam: EOW arrest Ponzi firm head

Ayaskant Das Published On : Nov 8, 2015 at 2:36 PM Updated On : Nov 8, 2015 at 2:45 PM

Odisha Sun Times Bureau
Bhubaneswar, Nov 8:

Economic Offences Wing (EOW) of the Odisha Crime Branch yesterday arrested a top official of a chit fund firm from Kolkata for allegedly duping investors of crores of rupees, official sources said today.

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The sleuths arrested the managing director (MD) of OAK India Multi-State Credit Cooperative Society Limited, Omkar Singh for allegedly duping gullible investors in Odisha of over Rs 10 crore.

The accused was arrested under section 120-B/406/467/468/471/420 of IPC r/w section 4, 5 and 6 of Prize Chits and Money Circulation Schemes (Banning) Act, 1978 and section 6 of OPID Act, 2011. He was produced before the Additional Chief Judicial Magistrate, Kolkata and was brought on transit remand. He will be produced in the designated court in Cuttack.

A case was registered against the company on the report of one Subash Chandra Pradhan from Bhanapur under Balanga police station limits in Puri district.

The complainant had alleged that Omkar Singh, managing director of Ambitious Diversified Projects Management Ltd (ADPML) and OAK India Multi-State Credit Cooperative Society Limited have collected crores of rupees from the investors of Odisha by assuring high rate of interest and closed down the offices without paying the interest as well as the principal amount.

The Kolkata-based chit fund firm had collected money from investors promising them higher returns on their invested amount in quick time.

Notably, investors from Ganjam district, in January this year, had petitioned Chief Minister Naveen Patnaik, RDC (Southern division), district Collector, DIG (SD), SP, CBI and the Crime Branch seeking investigation into the matter after they found that the company had changed its name from Ambitious Diversified Projects Management Ltd (ADPML) to OAK India Multi-State Credit Cooperative Society Limited.

Besides, the address of the ponzi firm headquartered at 19-B, Syed Amar Ali Avenue, First Floor, Kolkata-17 in West Bengal was changed to Glorious Space, East Topsia Road, Kolkata.

When the company changed the name of the investment product ‘Non Convertible Secured Redeemable Debentures Certificate’ to ‘Cooperative Society Certificate’, the investors grew suspicious and reported the matter with Baidyanathpur police station in Ganjam district. The protestors had also staged demonstration in front of the police station seeking stern action against the dubious firm.