Bhubaneswar, June 3: The arrest of city-based realtor-cum-film producer Niranjan Rana on charges of cheating his clients of Rs 9 crore has once again exposed the links between builders and the Odia film industry.

Preliminary investigations by police have revealed that Rana had diverted the money he duped from gullible investors into the film industry.

Sources said builders were investing money in Odia films because they can be made on low budgets.

"Rana told us that he has produced six Odia films so far. This morning, two well-known actors tried to convince the complainants to settle the matter amicably. They even tried to strike a settlement on behalf of Rana, which indicates his excellent rapport with the film fraternity," said a police officer.

The role of the Odia film industry first came under the scanner in 2013 after money laundering by several deposit collection companies was unearthed. Several Ponzi firms were found to have invested money in films featuring popular stars with an aim to build brand value among target audiences and to win the trust of depositors.

"Profit-making was never their intention. It was mostly for the sake of publicity. The builders hardly bother about the film's fate at the box office as their sole intention is to get close to the stars," said another police officer.

Diversion of money from public to the film industry is nothing new in the state. In 2009, the police had arrested actor-director Naseer Khan for allegedly embezzling around Rs 500 crore through his Ponzi firm in Balasore. Khan also allegedly invested huge amounts of money in his film Shadow.

Well-known film-maker Susant Mani admitted that some builders were investing in the industry. "But, there are others who produce movies with genuine intentions. The industry has become professional and people are putting their money in for profit and not just for the sake of publicity," he said.

In June last year, popular comedian and BJD member Tatwa Prakash Satpathy aka Pappu Pom Pom had also come under the police scanner following the arrest of another builder-cum-producer Gayadhar Jena. However, the he had denied his involvement in the production of Chauka Chhaka.

Actor Sabyasachi Mishra said builders were investing money to increase their brand value and this was a way to diversify their investments. "As actors, it is not possible for us to conduct background checks of producers before signing a film. But, one should also be aware," he said.

In another development, the cops today received two more complaints against Rana. "We are trying to ascertain whether Rana has invested money in other sectors as well," said deputy commissioner of police Satyabrata Bhoi.