Odisha chit fund scam: EOW gets realtor on 2-day remand

Reported by Santosh Jagdev
Bhubaneswar, May 30:

A designated court of Economic Offences Wing (EOW) of Odisha Crime Branch (CB) in Cuttack today allowed the investigating agency to take Subhransu Singh, the managing director of a construction company named Sribhumi Constructions, on a two-day remand for further interrogation in the case.

The court’s decision came after hearing on a petition filed by the counsel of crime branch in the court seeking to take the accused on 4-day remand, sources in the CB said.

EOW had arrested Subhransu yesterday from his residence in Jayadev Vihar for allegedly cheating investors in Khordha and Puri districts of at least Rs 50 crores after promising them double the amount on their deposited money.

CB officials said Singh began his fraudulent business from his office at his Jayadev Vihar residence in 2011 and started a construction company. He later went on to open branch offices of the company in several other places.

After some months, he started collecting small deposits in the name of the company from investors in Khordha and Puri districts by floating various schemes. He promised gullible investors to double the amount on their deposited money, the CB officials added.

The accused later shut down all his offices after the Supreme Court handed over the chit fund scam cases to the CBI for investigation.

The EOW had registered a cheating case against the accused and company in January this year after acting on the complaints lodged by a group of duped investors.