Intensifying its crackdown on chit fund fraudsters, the Economic Offences Wing (EOW) of Odisha arrested an accused in Vihaan Direct Selling (India) Private Limited chit fund scam for alleged involvement in defrauding the investors to the tune of Rs 1.2 crore.

The fugitive economic offender Arabinda Kumar, a native of Kendrapara district, was arrested under relevant sections of Indian Penal Code, Prize Chits & Money Circulation Scheme (Banning) Act, 1978 & Sec. 6 of Odisha Protection of Interests of Depositors (in financial establishment) Act, 2011 was later produced before the Odisha Protection of Interests of Depositors (OPID) Court in Cuttack.

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The accused Kumar conniving with other personnel of the bogus money circulation company had duped several investors on the pretext of returning a high rate of interest on their deposits under various schemes launched by the company.

Earlier, four persons- Sarat Kumar Parida, Devabrat Harichandan, Chandan Kumar Mohalik and Prasant Kumar Mohanty- were arrested in Vihaan Direct Selling (India) Private Limited chit fund scam.

“Investigation revealed that the accused persons have duped 31 investors, pursuant to a criminal conspiracy, by collecting 1.2 Crores from them with the assurance of very high returns. Further, the aforesaid company & its Directors/Promoters have failed to provide the assured service/returns for which the money was invested”, the EOW informed in an official statement.