Berhampur: In a fresh development in the multi-crore chit fund scam in Odisha, the Enforcement Directorate on Thursday conducted raid in Berhampur in connection with an ongoing fraud case involving Green India company.
As per information, a team of four to five officials of the central agency carried out the search operation at the residence of the company owner, Pradeep Singh.
During the raid, members of the ED team are stated to be examining and collecting important documents and other financial records to probe alleged financial irregularities and fraudulent activities connected to the chit fund operations.
Notably, the company was engaged in money circulation business, operating primarily from Berhampur area. The company has several subsidiaries, including Green India Properties, Green India Infra Projects, Green India Retail and Green India Multi-state Cooperative Pvt Ltd.
The company had allegedly duped hundreds of gullible investors of over Rs 30 crore over a period of three years through fixed deposit, recurring deposit (RD), by promising to provide houses and land loans etc under different schemes floated by it, sources added.
Most of the investors in the firm are stated to be from the southern districts of Odisha. The ongoing investigation is part of a broader effort to crack down on fraudulent financial schemes operating in the region.
It may be recalled that the fraud case was initially taken up by the Economic Offences Wing (EOW) of the state Crime Branch following complaints of irregularities more than a decade ago. Hundreds of depositors gheraoed the EOW office in Berhampur in 2014, demanding the arrest of Singh.
The case was subsequently probed by the CBI which found several incriminating documents from the offices and houses of the directors of the company during raids conducted by its officials.
Sources said around 60 investors of Berhampur had lodged a complaint with the Berhampur Town police station against the chit-fund company on August 4, 2013.In the complaint, the investors had alleged that the firm had duped them of Rs 5 crore.
