CBI nabs key accused in Odisha chit fund scam

NEW DELHI: The Central Bureau of Investigation ( CBI) on Friday arrested a key accused in Odisha chit fund scam. The accused identified as Dandapani Sethi is alleged to have collected crores of ruppes from gullible investors and later on disappeared. Sethi is alleged to have floated a company in the name of Zodiac Foundation which promised higher returns to investors.

The company started in 2007-08 claimed that the money collected from the investors will be used to build residential projects, set up industries. It also offered schemes such as recurring deposits and fixed deposits at an abnormal rate of return of 30 percent. CBI registered a case against Zodiac Foundation on the directions of the Supreme Court which is also monitoring probe in West bengal chit fund scam including Saradha.

The agency said that Sethi has allegedly siphoned off the hard earned money of the investors and is believed to have bought properties in name of his friends and family members. “We will seek his remand and question him regarding the money and properties. He was arrested Phulbani in Odisha,” said a CBI official. He has been charged under cheating and sections 3,4 and 6 of Prize Chits and Money Circulation Schemes (Banning) Act, 1978.