Bhubaneswar: The state head of a Gujarat-based ponzi firm was arrested as also three directors of Artha Tatwa Group for interrogation.
Subhransu Lenka, state coordinator of controversial Astha International Limited, a Surat-based money circulation company, has been arrested by the state crime branch on the charge of embezzling about Rs 500 crore from investors, DIG of Crime Branch, Rajesh Kumar said.
"We have registered a case against Lenka based on the complaint of investors. There are serious charges against him and the company. He is being interrogated," Kumar said.
Lenka will be produced in the court soon.
During interrogation, the Crime Branch would like to gather information on the involvement of others in the money circulation scheme, Kumar said.
The investigating agency would also try to dig out the investments made by the company.
Astha International had opened two offices in Bhubaneswar and Berhampur in 2010. The company, on June 5, 2012, came out with a public notice stating it had been incurring losses and would cease to function. It asked its investors to submit documents to claim their money.