Two More Arrested In Rs 10 Cr Ponzi Scam; Check How The Firm Swindled Over 500 Depositors In Odisha

By
OB Bureau

Bhubaneswar: Four days after Director and Promoter of M/s Auroxa Deal Multitrade (OPC) Pvt. Ltd. Babu Singh Kushwaha was apprehended from Gwalior, Economic Offences Wing (EOW) of the Odisha Crime Branch on Thursday arrested two Upper Line members from their respective residences in Odisha’s Balasore district in an alleged Rs 10 crore cheating case.

The arrested have been identified as Sarat Kumar Nayak and Prabhat Ranjan Das.

All the three accused were produced before the Designated Court under OPID Act, Balasore, which remanded them to judicial custody.

An official release said that a case under Sections 406, 420, 467, 468, 471, 120 B of the IPC, Section 66 of the IT Act, Sections 4, 5, 6 of the PCMCS (Banning) Act, and Section 6 of the OPID Act was registered against Kushwaha and the two others on the basis of a complaint filed by Chandra Kanta Dash and others.

Investigation revealed that Kushwaha was the only director of M/s Auroxa Deal Multitrade (OPC) Pvt. Ltd. registered with ROC, Gwalior, in May 2019. The company had floated various lucrative schemes/ packages that promoted direct selling of various household goods/ electronic goods with high returns having cashback offers.

The deposits collected by the company under the cover of direct selling are nothing but Ponzi Schemes and Binary Schemes. The business model is a simple pyramid structure, that works as a binary scheme in which the early entrants earn money and as the number of investors/ depositors increases, the scheme collapses at a point in time. Thus, the deceit and fraud are camouflaged under the name of direct selling marketing and business, the release further said.

M/s Auroxa Deal Multitrade (OPC) Private Limited was functioning in a rented building near Suraj Hotel, Sahadevkhunta, Balasore, from 2019 to 2020 and Kushwaha and other promoters of the company motivated the newcomers/ investors to join various business packages and collected huge deposits from the public.

The company had collected more than Rs 10 crore from 500 investors and duped them subsequently.

Further investigation into the matter is underway, it added.

 

 

OB Bureau

Recent Posts

Threat Call: Was Shah Rukh Khan Targeted For His Deer-Hunting Dialogue In ‘Anjaam’?

Mumbai: Mumbai Police swung into action immediately after Bollywood superstar Shah Rukh Khan received a…

November 7, 2024

[Watch] Snowfall In Desert For The First Time!

Dubai: The effects of global climate change are being seen in various manifestations across the globe.…

November 7, 2024

Police Case Against Websites Selling T-Shirts With Photos Of Dawood, Bishnoi

Mumbai: When criminals are idolised and used for commercial purposes, police are bound to take action.…

November 7, 2024

11 Years After Criminal’s Murder In Bomb Explosion, Court In Odisha Sentences 11 Accused To Life

Berhampur: The Ganjam district and sessions court here on Thursday sentenced 11 persons to life…

November 7, 2024

Astronaut Sunita Williams’ Health Deteriorates Due To Extended Stay In Space

New York: Recent pictures of Sunita Williams and Barry 'Butch' Wilmore from the International Space…

November 7, 2024

India Calls Out Canada’s ‘Hypocrisy’ For Blocking Australian Media Outlet After Jaishankar Interview

New Delhi: Bilateral relations having hit an all-time low since Justin Trudeau’s accusation of Indian involvement…

November 7, 2024

Mango Kernel Incident In Odisha: Report Reveals Faecal Contamination, Presence Of Hydrogen Sulphide

Bhubaneswar: Faecal contamination was found in the food and water samples sent for test following…

November 7, 2024

Path-Breaking Legislation: Social Media To Be Banned For Children Under 16 In This Country

New Delhi: The internet and social media are considered to be harmful for children. But…

November 7, 2024