The Crime Branch of Odisha Police today arrested Khirod Chandra Malick, the chief of a reputed NGO, Biswa, on charge of duping investors like ponzi companies.
Malick, who is also the brother of senior BJD MLA and former minister Pramila Malick, was arrested by the Economic Offence Wing (EOW) of the Crime Branch from Sambalpur, Crime Branch IG Rajesh Kumar told reporters here.
The Crime Branch had three days ago registered a case against Malick, who is also the managing director of Micro Finance for Low Income Group, as per the suggestion of Reserve Bank of India.
The RBI in an advisory to the state finance department suggested to keep a tab on Malick's micro finance activities as they collect money from the investors without having valid permission. Biswa's (Bharat Integrated Social Welfare Agency) micro finance activities were not ever registered as a non-banking financial institution.
"Malick's organisation has been accused of collecting about Rs 10 crore from the poor people," Crime Branch Additional Director General (ADG) B K Sharma said, adding that Biswa was collecting money in the name of making the poor people economically sound.
Malick has been charged with collecting deposits of chit fund companies to the tune of Rs 10 crore and then cheating depositors' of their money, Sharma clarified.
Malick would be produced in the court tomorrow, police said.
