Sambalpur: A 36-year-old man from Sambalpur has been arrested for allegedly running a massive fraudulent investment scheme that swindled nearly ₹50 crore from unsuspecting investors.
The accused identified as Madhusudan Barai, a resident of Chandan Nagar under Khetrajpur police limits, operated his scheme under the banner “A&A Enterprises Investment Returns” from an office near NSCB College Chowk.
Addressing a press briefing on Thursday afternoon, Sambalpur SP Mukesh Bhamoo said Barai lured people with the promise of unusually high returns and collected money from residents across Sambalpur and neighbouring areas.
The scam surfaced after complainant Rajkumar Panda and several others approached Sadar police on November 21, alleging that they had been cheated. During the investigation, police identified 47 investors who had deposited large sums 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 raid on his office led to the seizure of a smartphone, multiple CPUs, LED monitors, keyboards, a printer and other electronic equipment.
“We estimate the fraud to be around ₹50 crore. So far, we have verified transactions worth ₹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 even government employees,” SP Bhamoo said.
Police have begun scrutinising Barai’s bank accounts, financial transactions and properties. 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.
