Odisha: EOW Arrests Chit Fund Accused From AP

Bhubaneswar: The Economic Offences Wing (EOW) has arrested Balaraju Mallikarjun Raju (54), Director of M/s Sastra Enterprises Ltd and M/s Earnmarx Marketing Pvt Ltd from Tirupati in Andhra Pradesh on Thursday.

Raju was arrested by the EOW in connection with a chit fund case of 2011 under sections 467/468/471/420/406/120B IPC read with section 4/5/6 of Odisha Protection of Interests of Depositors (in Financial Establishments) Act,2011, said a press note issued by the EOW today.

The EOW produced Raju in the Court of the Additional Junior Civil Judge, Tirupati before getting him on transit remand. He will be produced in the OPID Court, Balasore, the note added.

Raju was arrested in connection with a case registered on the basis of a written complaint by one Khirod Chandra Barik of Baripada Town.

Barik had alleged in the complaint that Raju had unauthorizedly collected deposits under various schemes and the officials and directors of M/s Sastra Enterprises Ltd and M/s Earnmarx Marketing Pvt Ltd had not paid maturity amount.

According to the EOW press note, the investigation has revealed that during the period 2009 and 2010, Directors and officials of M/s Sastra Enterprises Ltd and M/s Earnmarx Marketing Pvt Ltd have unauthorizedly collected public deposit to the tune of Rs 28 crore approximately by inducing the investors through their attractive advertisements, distribution of leaflets, brochures, etc to invest money under their different deposit schemes alluring them with a very high rate of interest.

After collection of a huge amount from the public, they absconded without paying the monthly returns as well as the principal invested amount of the investors thereby cheated the public and misappropriated their hard-earned money, the press note said.

The EOW has claimed to have seized several incriminating documents during a search at the residential premises of Raju.

It is worthwhile to mention here that four accused persons Partha Sarathi Jena, Tapan Barik, Sadasiva Naik, all office bearers of Baripada branch of the company and V Sampath, the Managing Director were arrested. Sampath is still in judicial custody.




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