EOW ARRESTS PROMOTOR OF CHIT-FUND COMPANY- IN THE MATTER OF CHEATING TO THE TUNE OF MORE THAN 10 CRORES
Bureau,Odishabarta
Bhubaneswar:Economic Offences Wing, Bhubaneswar has arrested accused, Babu Singh Kushwaha, Directorand Promoter of M/s Auroxa Deal Multitrade (OPC) Pvt. Ltd.- a chit fund company,on 13.02.2022 fromGwalior (MP) 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. On being arrested, he was produced before the JMFC, Dabara, Gwalior and is being brought to Bhubaneswar on the strength of transit remand.
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 croresunder 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, the deceit and 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, SahadevKhunta, Balasore. The present accused, Babu Singh Kushwaha, Director of the company & its other Promoters /Upper line members 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.
