Cuttack: Former Vizag West MLA and YSR Congress MV Prasad, who was arrested from his house in Visakhapatnam on Tuesday in an alleged multi-hundred crore chit fund case, will be brought on remand for further interrogation, informed Crime Branch (CB) ADG Sanjeeb Panda on Wednesday.
“Prasad had opened branch offices of his company Wellfare Buildings and Investments Private Limited in Nayagarh, Cuttack and Bhubaneswar between 2009 and 2014 and collected money from the people on the promise of high returns. Besides, he had also promised to provide them land in Visakhapatnam,” he said.
A probe is on to detect his overall property and investment of the chit fund money.
“More facts will emerge after further interrogation,” he added.
EOW SP Gagarin Mohanty, who is investigating the case, told the media that Prasad was also a film producer and had invested the chit fund money on a number of Telegu movies.
The ex-MLA had opened the branch office of his company in Odisha, Chhattisgarh and Andhra Pradesh in 2001 and collected about Rs 1200 crore from people. However, he defaulted in returning the money.
After arresting him on Tuesday, the EOW team had brought Prasad to Cuttack and produced him in the Special Odisha Protection of Interests of Depositors (OPID) court in the evening.
The court later remanded him to judicial custody and he was then sent to Choudwar Circle Jail.
Also Read: Chit Fund Scam: Odisha Police Arrest Ex-Andhra MLA
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