Sambalpur: A 36-year-old man was arrested in Odisha’s Sambalpur for allegedly running a fraudulent investment scheme and duping gullible investors of around Rs 50 crore.
The accused, identified as Madhusudan Barai of Chandan Nagar under Khetrajpur police limits, operated his racket under the banner ‘A&A Enterprises Investment Returns’ from an office near NSCB College Chowk. Police have so far verified transactions to the tune of Rs 20 crore.
Sambalpur Superintendent of Police Mukesh Bhamoo told reporters that the accused lured people with the promise of unusually high returns and collected money from residents of Sambalpur and neighbouring areas.
The fraud came to light after one Rajkumar Panda and several others approached Sadar police on November 21, alleging that they had been cheated. During the investigation, police identified 47 inv
estors who had deposited large amount of money with the agency based on Barai’s false assurances.
Police said the accused prepared fabricated agreement-cum-acknowledgement papers to gain the trust of investors. He received funds running into crores through cheques, cash deposits and online transfers. Though he initially paid small returns to maintain credibility, he eventually stopped returning both the principal amount and the promised profits, continuing to mislead victims with repeated false assurances.
A smartphone, multiple CPUs, LED monitors, keyboards, a printer and other electronic equipment were seized during raid at his office.
The fraud committed by the accused is estimated to be around Rs 50 crore, while police have so far verified transactions to the tune of Rs 20 crore. A large portion of the money was received in cash, and some transfers were found in his personal bank account. The victims include friends, businesspersons and also government employees, Bhamoo said.
Barai’s bank accounts, financial transactions and properties are being examined. A case has been registered under relevant Sections of the Bharatiya Nyaya Sanhita (BNS) read with Section 6 of the Odisha Protection of Interests of Depositors (OPID) Act, police said.