The Economic Offences Wing (EOW) of Crime Branch of Odisha Police on Tuesday arrested three promoters of a ponzi firm on the charge of duping investors of crores of rupees, a police officer said.
The arrested trio were identified as Sarat Kumar Parida of Brahmeswarpatna, Debabrata Harichandan of Chandrasekharpur and Chandan Kumar Mahalik of Jagannath Vihar in Bhubaneswar, the officer said.
They were arrested under various sections of IPC and section 5 & 6 of Ponzi Chit and Money Circulation Scheme (banning) Act, 1978 and section 6 of the ODIP Act, 2011, he said.
Investigation revealed that the three accused persons along with others entered into a criminal conspiracy with Director of Q Net Limited though its Indian Franchise M/s Vihaan Direct Selling (India) Private Limited and induced the gullible investors to invest in the company with promise of handsome returns, the officer said.
"While inducing investors, they used to give rosy picture of the schemes floated by the company like return of Rs 50 crore with a little investment of Rs 5 lakh within a span of only five years," the officer said.
Giving details of their modus operandi, the official said: "they were functioning in a pyramid structure where a new entrant will deposit the amount in the account of up-line member which will pass through different levels to the company's account ... The accused persons had collected huge money for the company ... "
During searches at their houses, many documents, articles, I Card, money receipts, list of investors and others were seized, the EOW officer added.
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