Bhubaneswar: The Economic Offences Wing of the crime branch today arrested a builder on the charges of duping investors after promising them land.
Builder Braja Sundar Mishra, 37, of Kalarahanga under Mancheswar police limits was also the director of two money deposit collection companies.
Police said that the accused had raised huge money through two companies named Land India Real Estate Private Limited and Land India Assets Limited. The other directors of these companies had also connived with Mishra in his fraudulent acts.
"In the name of real estate business, Mishra and other directors had collected about Rs 8 crore from thousands of depositors in Bhubaneswar, Polasara and other places in Ganjam district. They collected the money between 2011 and 2013 with a promise to provide high rate of interest on the deposited amount," said deputy inspector-general of the Economic Offences Wing Sanjay Kumar.
Both the companies were operating from Nayapalli. "These companies had floated several lucrative schemes, including monthly income, double return and recurring deposit schemes, with an assurance of high rate of interest. The company officials used leaflets and colourful brochu-res to lure the investors," said a police official.
The police have registered a case on January 5 after the investors lodged a complaint.
Further investigation revealed that initially Mishra had paid interest to old depositors with money raised from fresh investments. However, the company closed down its office on July 2013 after it failed to pay the interest and the maturity amount to investors.
Mishra was arrested on charges of forgery, criminal conspiracy, cheating and criminal breach of trust. "We are also trying to nab the other directors of these companies. We suspect that more than a dozen people were involved," said a police official.