Bhubaneswar, Jan. 22: The economic offences wing (EOW) of the state crime branch today arrested a former army man for land fraud worth Rs 30 crore in Chandaka on the city outskirts.

Retired Lt Col Rakesh Rana, who was awarded the Kirti Chakra, was arrested from New Delhi. He was produced in Delhi court and was subsequently brought to Odisha on transit remand.

"Rana has set up an NGO named Sainik Welfare Organisation in Delhi along with some others. The organisation floated a plotted scheme at Giringaput Mouza in 2012 and collected money. However, the investors were neither provided land nor returned their money. Subsequently, a case was registered with the EOW in July 2015," said Special director-general of crime branch B.K. Sharma.

Called Defence Intercity Vatika, the plotted scheme lured investors with the promise of a 27-acre complex with a boundary wall, drainage, roads, water facilities and electricity. The NGO had promised to hand over the plots to the investors by June 2012 with valid documents and completing the procedure of registration and mutation of the land. The investigating agency said the NGO had also engaged a real estate firm for development and promotion of the plotted scheme.

The organisation has collected Rs 30 crore from 542 defence personnel (in service and retired). Sources in the EOW said the NGO had promised a 50 per cent discount on plots for those with Kirti and Shaurya Chakras.

Earlier, the investigating agency had arrested two persons in connection with the fraud. The police have arrested Purna Chandra Panda, the managing director of a real estate firm engaged by the NGO. The EOW had also arrested the NGO's liaison officer Pradipta Barik.

The accused was arrested under sections several sections of the Indian Penal Code and section 6 of the Odisha Protection Of Interest Of Depositors Act for forgery, conspiracy and cheating.