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Properties of ponzi firm raided in Odisha.

part of its continuing drive against fraudulent chit fund companies, the CBI on Saturday carried out raids against Micro Finance Ltd MFL), a ponzi firm alleged have cheated investors to the tune of ` 500 crore.

The central agency raided premises in Cuttack, Bhubaneswar and Berhampur among other cities of the state. The CBI raided the property of the company's former MD Durga Prasad Mishra-- who was arrested in December-- and Ajay Swain, suspended state government servant. The CBI raided

the residence of Ashok Patnaik, one of the directors of MFD in Cuttack, while also searched the company's head office in Berhampur and the residence of one of its directors, Suratha Das in the state capital.

Das, however, claimed he was innocent. " I have not received any financial benefits from the company and they had made me a director without my knowledge," he said.

Swain, during his stint as PA to the commissioner- cum- secretary of panchayati raj in 2013, had issued a letter on the department's letterhead, asking all district collectors not to take action against MFL. The company allegedly mobilised deposits from nearly five lakh investors through several schemes promising lucrative returns. Sources said that the company, which was was operating in as many as 18 states, received investments to the tune of ` 500 crore through its 10 subsidiaries. Before the CBI took over the case, the state crime branch had lodged 13 cases against the company and arrested 13 of its functionaries.

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Publication:Mail Today (New Delhi, India)
Date:Feb 1, 2015
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