Chit fund scam: CBI arrests one, raids Rajya Sabha MP's residence

CBI on Tuesday arrested a middleman after recovering cash of over Rs 14 lakh and two gold biscuits from his residence during searches conducted at 18 locations including the home of a Rajya Sabha MP in connection with its probe into the Seashore group's alleged chit fund scam.

PTI| Last Updated: Nov 18, 2014, 23:01 PM IST

New Delhi: CBI on Tuesday arrested a middleman after recovering cash of over Rs 14 lakh and two gold biscuits from his residence during searches conducted at 18 locations including the home of a Rajya Sabha MP in connection with its probe into the Seashore group's alleged chit fund scam.

Shubhankar Nayak, the alleged middleman was arrested by the agency late in the evening, a CBI official said.

"In the Odisha chit fund case, CBI has arrested Subhankar Nayak on the basis of documents seized from his residence which prima facie shows nexus with Seashore company for channellisation of funds," the official said.

Sources said the agency recovered Rs 14.63 lakh in cash and two gold biscuits of 50 grams each besides a number of incriminating documents.

The agency carried out search operations in Delhi and Mumbai besides 16 locations in Odisha. These included the residence of Rajya Sabha MP from Odhisa Pyarimohan Mohapatra in Delhi and Bhubaneswar and two retired IAS officers -- PK Hota and S C Pattnaik from the state, the sources said.

In Bhubaneswar, Mohapatra told reporters, "I welcome the CBI's search at my residence. They (CBI team) searched my residence this morning and have taken away some documents including my bank pass book, property records, party documents and others."

Asked why the searches were conducted, he said, "There was no mention of the reason on the search warrant given to me. Ask CBI people why they searched my house."

Claiming that he had no link with any ponzi scheme companies, Mohapatra said he would cooperate with CBI to unearth the truth.

The MP had earlier admitted that he had met Seashore Group CMD Prashant Dash, who is now in jail.

"I had met him (Dash) when he came to my house and proposed to set up a maize processing unit in Nabarangpur district. Then he (Dash) came to my house for the second time to invite me to a function."