Bhubaneswar, June 15: Actor Tatwa Prakash Satpathy aka Pappu Pom Pom today admitted to having taken Rs 2.94 lakh as loan from Pravash Chandra Rout, the chairman of deposit collection firm Oscar Group of Companies, for his election expenses.

The company is alleged to have duped depositors of hundreds of crores of rupees in the state as well as Gujarat and Maharashtra. However, Pappu claimed that he had returned the money to Rout, who was arrested by crime branch on June 9.

Pappu, who unsuccessfully contested the Assembly election in 2014 on a BJD ticket from Champua in Keonjhar district, also mentioned in his election affidavit that he took loans to the tune of Rs 9 lakh from five persons, including Rs 2.5 lakh from Rout.

"I took a hand loan of Rs 2.5 lakh and another Rs 44,000 from him for my election expenses. I have already returned the money to him and have all the money receipts to substantiate my claim. The entire process was transparent and I had also furnished the matter in my election affidavit," Pappu told The Telegraph.

He also denied promoting the deposit collection company. "I have visited Gujarat only to promote my films, which were made under the banner of Oscar Entertainment. I have never endorsed the company in any other way. I am ready to face any probe by any investigating agency," he added.

Between 2010 and 2014, the Ponzi firm had produced four Odia movies - To Akhire Mu, Most Wanted, Balunga Toka and Rangila Toka - under the banner of Oscar Movies and Entertainment. Pappu was the lead in Rangila Toka.

"No one was aware of the scam by Ponzi firms till 2013. As actors, we cannot verify producers' antecedents. However, from now on, I would be careful before signing any films with producers with such backgrounds," he said.

It was also alleged that the BJD's Rajya Sabha MP and actor Anubhav Mohanty had promoted the Ponzi firm through the script of one of the four movies it produced. In one scene from Balunga Toka, Mohanty was seen persuading a reluctant investor to invest in Oscar Finance. Another actor was also seen expressing his happiness after his son was employed with Oscar Finance in the movie.

In a related development, the crime branch arrested three other directors of the firm - Kirti Bastia, Abani Patnaik and Tara Prasad Hota. The police said Hota managed the company affairs in Gujarat. A local court in Cuttack today extended the remand period of Rout for another five days while allowing the crime branch to take Hota on a three-day remand for further investigation.

Investigations have revealed that the group had 49 and 58 branch offices in Odisha and Gujarat, respectively. The company collected investments to the tune of Rs 230 crore between 2010 and 2014, assuring high interest rate.