Bhubaneswar: The Economic Offences Wing (EOW) of the Odisha Crime Branch has arrested two Upper Line members of a chit fund company in a Rs 10 crore fraud case.
Sarat Kumar Nayak and Prabhat Ranjan Das, Upper Line members of M/s Auroxa Deal Multitrade (OPC) Pvt. Ltd, have been arrested from their respective residences in the district of Balasore.
The Director and Promoter of the firm, Babu Singh Kushwaha, had been arrested by the EOW earlier. All the three accused persons have been remanded to judicial custody.
EOW had registered a case based on a petition filed by Chandra Kanta Dash and others against M/s Auroxa Deal Multitrade (OPC) Pvt. Ltd. and its Director & Promoters on the allegation of cheating & duping to as many as 500 gullible depositors to the tune of more than Rs 10 crores under false promise of high returns on their deposits/ investment in different schemes launched by the company.
Investigation of the case revealed that M/s Auroxa Deal Multitrade (OPC) Pvt. Ltd. is registered with ROC, Gwalior (Madhya Pradesh) during May-2019 and the present accused, Babu Singh Kushwaha is its only Director.
The said company under various lucrative schemes/packages 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 of M/s Auroxa Deal Multitrade (OPC) Private Limited is a simple pyramid structure, 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 of time. Thus, fraud is camouflaged under the name of Direct Selling Marketing and business.
It has been ascertained during investigation that during the year 2019-2020, the office of M/s Auroxa Deal Multitrade (OPC) Private Limited was functioning in a rented building near Suraj Hotel, Sahadev Khunta, Balasore.
The present accused, Babu Singh Kushwaha, Director of the company and its other Promoters/Upper Line members namely, Sarat Kumar Nayak and Prabhat Ranjan Das (the arrested accused persons) have made wide propaganda in Odisha and motivated the new comers/investors to join in various business packages and collected huge deposits from public.
It has been learnt that the company had collected more than Rs 10 crores from as many as 500 investors and duped them subsequently. Investigation of the case is continuing.
