BHUBANESWAR: A designated court in Cuttack on Tuesday convicted the managing director of
Shree Bhumi Constructions, a chit fund company, for duping investors of Rs 5.43 crore.
Subhranshu Singh was awarded seven years of rigorous imprisonment and a fine of Rs 1 lakh was imposed on him.
Singh was arrested by the economic offences wing (EOW) of the Crime Branch here on May 29, 2015. The
EOW said the Ponzi firm had collected Rs 5.43 crore from 569 investors between 2011 and 2013. A case of cheating was registered against Singh and his company on January 3, 2015 by EOW.
The probe agency said Shree Bhumi Constructions had floated dubious schemes and lured investors with the promise of high returns . "It was found that the convict had targeted middle and lower-middle-class families in rural areas. After collecting the money, the company had failed to give high interests. When investors started complaining, the company closed its offices in March 2013," said an EOW officer.
Investors said they ran from pillar to post to get their money back. "We had approached the police in different districts. But police had only registered the case, they had not arrested anyone. We then knocked the doors of EOW in 2015," Prabir
Pradhan, a duped investor, said.
(Representative image)
