A local court in Odisha on Friday awarded a five-year jail term and a Rs.50,000 fine to two managing directors of East Coast Mutual chit fund company for duping hundreds of depositors in Khurda district.
The Khurda Chief Judicial Magistrate court awarded the jail term along with the fine to the two managing directors Prabhat Nanda and Rabeya Begum, defence lawyer Bijay Patra told reporters.
Sources said the company duped some 4,000 depositors in Kerang area of Khurda district of about Rs.8 crore.
Both the MDs of the chit fund company were arrested under Prize, Chit and Money Circulation (Banning) Scheme Act 1978A after a case was filed in 2013, the sources added.
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