Odisha ex-AG held in chit fund scam

5 Dariya News

Bhubaneswar 22-Sep-2014

The Central Bureau of Investigation (CBI) Monday arrested Odisha's former advocate general Ashok Mohanty in connection with a multi-crore-rupee chit fund scam, a lawyer said.Mohanty was arrested from his home in Cuttack town, 26 km from here. He was arrested for his alleged link with the Artha Tatwa group, the lawyer said. Mohanty was later brought to the CBI office here.Mohanty said he had a clear conscience and was not involved in any wrongdoing. "Truth will prevail," he told reporters after his arrest.The CBI is investigating the chit fund scam on the direction of the Supreme Court.

The scam came to light after a large number of investors last year complained that many firms collected huge amounts of money from them promising high returns, but later refused to pay them back as promised.

The CBI is probing at least 44 companies in Odisha, including Kolkata-based Saradha Group and Odisha-based Seashore and Artha Tatwa groups. The loss from the scam is claimed to be running into thousands of crores of rupees.Mohanty was earlier interrogated by the CBI Sep 13, a day after he resigned from the advocate general's post.