Odisha Sun Times Bureau
Bhubaneswar, Jul 20:

A local court in Odisha today convicted and sentenced two directors of a chit fund firm to five and three years of rigorous imprisonment (RI).

Pic Courtesy: www.metrovaartha.com Pic Courtesy: www.metrovaartha.com

The Chief Judicial Magistrate (CJM) Court here today convicted and sentenced Binayak Mishra and Gitanjali Panigrahi, two directors of Maa Mangala Savings & Credit Cooperative Limited to five and three years of RI  respectively.

The court also imposed a fine of Rs one lakh on Binayak who was the managing director of the firm, failure to deposit the fine amount would increase his jail term by another six months.

Similarly, the court imposed a fine of Rs 50,000 on Gitanjali and for failing to deposit the fine amount the jail term will be increased by an additional three months.

The Ponzi firm which had its office in Baramunda area of the capital city was registered in Puri and had operations across the state.

The firm allegedly targeted small depositors like panwallas, vegetable sellers and the like and used to collect deposits promising them to double the amount within two years.

In the process, the firm has allegedly defrauded around Rs 12 crore from the depositors. As the firm failed to pay up the depositors on the maturity of their deposits, complaints were filed leading to the arrests of Binayak Mishra and Gitanjali Panigrahi.

Unconfirmed sources said the two are likely to appeal against the verdict in the higher court.

However, two other directors of the firm are absconding till date.