Orissa: More CBI raids in chit fund scam

The Central Bureau of Investigation on Tuesday conducted simultaneous raids on the offices of Chennai-based firm Sastra Enterprises in nine places across the country, including Orissa.

The CBI conducted raids in Chennai, Madurai and Tripura, as well as Bhubaneswar, Baripada, and Bhadrak in Orissa.

Sources revealed the CBI has seized several incriminating documents during the raids in the company’s Bhubaneswar office.

The Chennai-based firm allegedly duped crores of rupees from gullible investors in Orissa through different schemes by promising lucrative rates of interest.

The company had widespread operations especially in Balasore and Bhadrak and Mayurbhanj districts in the state. It collected crores of rupees by luring people on the pretext of hefty returns in a short span of time.

Sastra Enterprises closed down its offices in Orissa in 2010. The company has allegedly collected over '150 crores from the state.

The company’s managing director V. Sampath was arrested in May 2013 from Chennai. He is currently lodged in Orissa’s Bargarh jail.

In a related development, the CBI special chief judicial magistrate court on Tuesday allowed the CBI to take arrested former Youth Congress state president Rajat Choudhury and senior high court lawyer Debasish Panda on three-day remand for further investigation.

Both Mr Choudhury and Mr Panda were arrested by the CBI for their alleged complicity in the Artha Tatwa Group chit fund scam on Monday.