Bizodisha Bureau, Bhubaneswar, July 1, 2015 :

Police on Wednesday arrested the managing director of chit fund firm Vibgyor Group of Companies Pabitra Kumar Sahoo for cheating investors of Rs 14 crore, sources said.

Capital Police here conducted a raid at a house in Banpur of Khordha district and arrested Sahoo under sections 420, 120(B) of IPC and Sections 4, 5 and 6 of Prize Chit and Money Circulation Scheme (Banning) Act 1978 and Section 6 of the Odisha Protection of Interest of Depositors Act.

Sahoo had opened the company’s office at Suryanagar in the capital city in 2009 and allegedly collected around Rs 14 crore from the investors through various schemes like recurring deposit, monthly income scheme and fixed plans.

The company had failed to return the money of the investors though it had promised them to give hefty returns earlier.

Hundreds of depositors and agents from Nayagarh and Khordha district in May last had staged a dharna in front of the Economic Offences Wing (EOW) of the State Crime Branch here urging it for action against the head of the chit fund company.