Berhampur, Nov 12 (LocalWire): A 57-year-old man was arrested on Monday evening for allegedly duping people of over Rs 90 lakh after luring them with the promise of high returns in his chit fund company.
Amiya Kumar Padhy of Bramha Nagar was the managing director of the ponzi firm Honeycomb Holdings Limited.
The company was registered at Berhampur and functioning from 2009 to 2011.
The accused allegedly duped over 70 investors from December 2010 to October 2011, said Berhampur sub-divisional police officer Bishnu Prasad Pati.
The accused allegedly targeted illiterate people and women coaxing them to invest in short-term schemes.
Initially, the company had returned money to investors but it closed down its office in December 2011.
‘We lodged an FIR against the director and managing director, said one of the investors from Binika.
The complainant said he had invested around Rs 15 lakh in the company.