Managing director of a chit fund company here was arrested for allegedly duping several people about Rs 90 lakh, promising higher returns on their investment, police said on Tuesday.
Amiya Kumar Padhy, 57, managing director of Honeycomb Holdings Limited was arrested on Monday. The company had its registered office at Berhampur town and functioned from 2009 to 2011, the police said.
According to a complaint, Padhy had duped 70 investors about Rs 90 lakh between December 2010 to October 2011, said sub-divisional police officer (SDPO) Berhampur, Bishnu Prasad Pati.
Padhy closed down the office after the government started action against chit fund firms.
The police said Padhy in a bid to win the trust of the people initially returned good amount to the investors. He targetted mostly women and illiterate traders.
The police acted based on the complaint lodged by an investor who deposited Rs 15 lakh with Padhys firm, the SDPO added.
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