Bhubaneswar: The Economic Offences Wing (EOW), Bhubaneswar, on Thursday arrested Nikhilanand Pasupalak, regional head of Success Online Service System (SOSS) Private Limited, for alleged involvement in defrauding the investors to the tune of Rs 500 crore in Odisha, Jharkhand and Delhi.
The arrested person had invested a substantial amount of proceeds from the fraud in the Bhojpuri film industry by floating ‘Cine Vision’ production house and also dabbled in acting.
According to an EOW release, Pasupalak was nabbed from Berhampur on the basis of a complaint lodged by one Parsuram Behera against the office bearers of the chit fund company operating its regional office in the Silk City in 2016.
The investigation revealed that the firm had its registered office at Basundhara in Ghaziabad, Uttar Pradesh, and was operating its regional offices at different places in the country, including Lochapada in Berhampur. Raman Kumar Singh was the Managing Director and Rakesh Kumar was the Secretary of the company while Pasupalak. was in charge of the regional office in Odisha.
He entered into a criminal conspiracy with two of his accomplices to defraud the investors by floating a slew of attractive investment schemes. They collected more than Rs 500 crore for insurance services, share marketing, dividends and estates/distribution of flat, fled in 2012 after embezzling the hard-earned savings of the investors.
Pasupalak had been absconding since then and constantly changing contact numbers and addresses to evade arrest.
Further investigation revealed that the company was collecting illegal deposits by floating different schemes under the promise of giving health care commodities and also lucrative returns on the amount invested. The company has collected such illegal deposits from Delhi, Jharkhand, Odisha and other places. A substantial amount from these deposits was invested by the accused in Bhojpuri films under “Cine Vision”, a sister concern of SOSS, Pasupalak had also acted in them.
During the house search, several incriminating documents – pan card, cheque books, investor lists, leaflets and brochures – were seized.
The accused booked under sections 420/406/120-B of Indian Penal Code besides under section 6 of Odisha Protection of Interests of Depositors (in Financial Establishments Act, 2011 is being remanded to judicial custody, the EOW release added.