Bhubaneswar-based real estate developer Shiridi Sai Estate Private Limited has been accused of duping public of over Rs 1 crore from Soro area of Balasore district, promising them land in the Capital.
The fraud has come as a bolt from the blue for the denizens of the district.
Following the complaints from the depositors, the police on Monday registered a case and initiated investigation.
Police said the real estate company had collected money in instalments through agents promising the depositors land on the outskirts of Bhubaneswar and doubling the money invested in the company. The depositors felt cheated only recently, when the company closed down its office at Khandagiri.
IIC of Soro police station Sujit Pradhan said the company, which had opened a branch at Soro in 2007, had collected over ` 1 crore from 106 depositors.
“Initially it had refunded money to the depositors as per the terms and conditions of fixed deposits. But later it stopped refunding the money assuring depositors of providing them land,” he said.
A victim, Ramesh Chandra Lenka of Kedarpur here, said he had deposited Rs 3 lakh. “After the local office closed down in 2010, I contacted the head office at Bhubaneswar which assured me of land. Recently, when I have learnt that the police arrested the company owner, I lodged a complaint,” he said.
As many as 75 depositors have lodged complaints with the Soro police seeking action against the fraudster and recovery of their deposits. A team of police officials would soon go to Bhubaneswar and start investigation.