Sambalpur Investment Scam: 36-Year-Old Arrested for Duping Investors
Sambalpur police made a significant breakthrough on Thursday by arresting a 36-year-old man accused of operating a massive fraudulent investment scheme that cheated investors of approximately Rs 50 crore. The accused, identified as Madhusudan Barai from Chandan Nagar under Khetrajpur police station limits, had been running his operation under the guise of A&A Enterprises Investment Returns.
How the Elaborate Fraud Operated
According to Sambalpur SP Mukesh Bhamoo, who briefed media representatives on Thursday afternoon, Barai strategically lured investors by promising unusually high returns on their investments. His fraudulent activities spanned across Sambalpur and neighboring areas, targeting a wide range of victims including friends, business personnel, and even government employees.
The scheme came to light when complainant Rajkumar Panda and several other victims approached Sadar police on November 21 with formal complaints about being cheated. Subsequent police investigation identified 47 confirmed investors who had deposited substantial funds based on Barai's false promises.
Modus Operandi and Police Investigation
Barai employed sophisticated tactics to gain his victims' trust, including executing fabricated agreement-cum-acknowledgement papers to create an illusion of legitimacy. He received funds through multiple channels including cheques, cash deposits, and online transfers, with the total amount running into several crores.
In a classic Ponzi scheme pattern, Barai initially paid small profits to early investors to maintain credibility and attract more victims. However, he eventually stopped returning both the principal amounts and promised returns, while continuing to mislead victims with false assurances about their investments.
During a raid on his office located near NSCB College Chowk, police seized crucial evidence including:
- A smartphone
- Multiple CPUs
- LED monitors and keyboards
- A printer and other electronic equipment
Police authorities have confirmed that Barai's bank accounts, financial transactions, and properties are currently under detailed scrutiny. SP Mukesh Bhamoo revealed that while the total fraud amounts to Rs 50 crore, investigators have so far verified transactions worth Rs 20 crore, with most money received in cash and some transactions processed through his personal account.
Legal Action and Ongoing Investigation
The Sambalpur police have registered a case under relevant Sections of the Bharatiya Nyaya Sanhita (BNS) read with Section 6 of the Odisha Protection of Interests of Depositors (OPID) Act. The investigation continues as authorities work to identify all victims and recover the defrauded money.
This case serves as a stark reminder for investors to exercise caution when approached with investment opportunities promising unusually high returns, and to thoroughly verify the credentials of any investment agency before committing funds.
