BHUBANESWAR: Former MLA and senior chief of YSR Congress Celebration Malla Vijay Prasad was arrested by the Financial Offences Wing (EOW) of Odisha Crime Department for duping buyers over Rs 2 crore by way of a discount fund scheme within the State.
Prasad, at present chairman of Andhra Pradesh Training and Welfare Infrastructure Improvement Company, is accused of duping greater than 150 depositors in Bhubaneswar, Narasinghpur (in Cuttack district) and Nayagarh between 2009 and 2014, official sources in EOW mentioned.
He was produced earlier than a chosen court docket at Cuttack on Tuesday and remanded in judicial custody. The previous Visakhapatnam West MLA was held from his Seethammadhara residence in Visakhapatnam on Monday.
In 2016, the CBI had raided Prasad’s home and workplaces in reference to the alleged Rs 1,200 crore chit fund rip-off dedicated by Wellfare Constructing and Estates in Odisha, Andhra Pradesh, Telangana, Jharkhand, Bihar and West Bengal.
As managing director of M/s Wellfare Constructing and Estates non-public restricted, he together with two administrators of the agency had allegedly promised buyers excessive price of curiosity on deposits below totally different schemes.
EOW’s investigation revealed that M/s Wellfare Constructing and Estates was initially registered with Registrars of Firms (ROC), Hyderabad. Later, the corporate was enlisted with ROC, Kolkata in 2011 with its head workplace in Visakhapatnam.
Wellfare Enterprise and Estates operated in Odisha by way of its department workplaces in Bhubaneswar, Narasinghpur and Nayagarh between 2009 and 2014. In the course of the interval, the agency reportedly lured depositors with schemes that promised to double their investments or present plots in Visakhapatnam.
The corporate apparently closed its workplaces after gathering an enormous sum of money from the buyers. Up to now, EOW has collected paperwork from 150 depositors and the quantity may rise. EOW has data that the previous Andhra Pradesh MLA’s firm’s operation might have unfold to another elements of the State like Sambalpur district. Nonetheless, probe is on to gather extra particulars.
YSR Congress chief held by Odisha CB in chit fund rip-off
In 2019, the EOW had registered a case on this connection below Sections 406, 420, 467, 468, 471, 120B IPC and Sections 4, 5 and 6 of Prevention of Corruption Act, Part 6 of the Odisha Safety of Pursuits of Depositors (in Monetary Institutions) Act and the Prize Chits and Cash Circulation Schemes (Banning) Act. Nonetheless, earlier than it may act, the Covid pandemic struck which the company mentioned delayed the motion. “The accused was produced earlier than a court docket in Visakhapatnam on Monday and introduced on transit remand to Odisha. He was produced in OPID Courtroom, Cuttack,” mentioned Crime Department ADG, Sanjeeb Panda.