Bhubaneswar: Scam Fund Chit Major Excavated in Balasore District where a company allegedly collected Rs 10 Crore from more than 500 investors promising their high returns before bankruptcy after the Pandemic Covid in 2020.
The country’s crime (EOW) wing has started a investigation Following complaints by some deceived deposits recently.
Auroxa Deal Multitrade Pvt Ltd, a circulation company Money Sham, registered in the Registrar of the company in Gwalior in Madhya Pradesh on May 23, 2019.
His office has served from a hotel room at Sahadev Khunta in Balasore.
The company allegedly attracted investors by promising high interest rates on their deposits and was collected around Rs 10 Crore between May 2019 and March 2020.
Eow said Babu Singh Kushwaha was the Director of the Company, while Kumar Kumar Nayak and Prabhat Ranjan Das held a post of promoters.
Probe agents, who have launched hunting for the three of them, said the company is running an illegal money circulation business with a direct sales of multi-level marketing units.
The company promotes the structure of the Pyramid investment in which new participants will deposit money in an up-line member account that will pass a different level with the company’s account.
“The company offers household appliances and electronic gadgets, including LED television sets and grinders to their depositors,” said an EOW officer.
The company distributes brochures in Balalasore District by holding meetings and workshops in different places.
Investors were offered a daily cashback of Rs 11 to RS 800 on RS deposits 1,500 to RS 1 Lakh for 250 consecutive days.
The company has also announced a prize between Rs 5,000 and Rs 30 Lakh Achieva Bintang and Emerald Star Achiever if investors managed to reach the target of registering certain new members within 30 to 150 days.
The company is thought to promise to double the investment of people in 250 days.