EOW ARRESTS TWO UPPER LINE MEMBERS OF CHIT-FUND COMPANY- IN CONNECTION CHEATING TO THE TUNE OF MORE THAN 10 CRORES
Bureau,Odishabarta
Bhubaneswar:In sequel to the arrest of accused, Babu Singh Kushwaha, Director and Promoter of M/s Auroxa Deal Multi-Trade (OPC) Pvt. Ltd.- a chit fund company, on 13.02.2022 from Gwalior (MP), Economic Offences Wing, Bhubaneswar has arrested two Upper Line members namely, Sarat Kumar Nayak and Prabhat Ranjan Das, from their respective residences in the district of Balasore in EOW PS Case No. 01 dated 31.01.2022 u/s 406/420/ 467/468/471/120 B IPC r.w. Sec. 66 of IT Act, 2000; Sec. 4,5,6 of PCMCS (Banning) Act, 1978 and Sec. 6 of OPID Act, 2011. All the three accused persons, on being produced before the Designated Court under OPID Act, Balasore have been remanded to judicial custody.
The above referred case has been registered pursuant to an enquiry conducted by EOW on a petition filed by Chandra Kanta Dash & 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 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 cash back 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 & 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.
