CBI ARRESTS AN MLA IN AN ON-GOING INVESTIGATION OF A CHIT FUND CASE

Press Release
New Delhi, 19.09.2017

            The Central Bureau of Investigation has arrested an MLA of Odisha in an on-going investigation of a Chit Fund case.

            Investigation revealed that the said accused had allegedly received huge amount into the account of his wife from the CMD of private Group of companies/entities based at Odisha for their smooth functioning in & around Cuttack area.

            It may be recalled that CBI had registered a case during June, 2014 against said Group of Companies & others based on the directions of Hon’ble Supreme Court of India in connection with the Chit Fund scams. It was alleged that the private Group of Companies based at Odisha had indulged in raising large scale deposits from the public to the tune of more than Rs.1000 crore(approx) by promising high rate of returns. It was also alleged that after raising crores of rupees, the accused had misappropriated the funds and failed to return the dues as promised to the innocent investors. The investors had lost more than Rs. 500 crore(approx). CBI had earlier filed a charge sheet in this case against the CMD, Directors and the Companies. Further investigation was continuing to look into the larger conspiracy and money trail angles as mandated by the Hon’ble Supreme Court.

            The arrested accused will be produced today before the Competent Court at Bhubaneswar. Further investigation is in progress.



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