Bhubaneswar, Aug. 28: The managing director of a city-based real estate firm was today arrested by the Economic Offences Wing (EOW) for allegedly cheating 542 serving and retired armed forces officials by promising them to provide plots in Chandaka. The amount involved is nearly Rs 35 crore.
EOW officials said that a non-government organisation (NGO) called Sainik Welfare Organisation India in New Delhi had announced a plotted scheme in 2011 for defence personnel on a plot of 27 acres in Chandaka.
"The organisation collected Rs 35 crore from 542 defence officials (in service and retired) towards the cost of the land. Subsequently, it had paid Rs 19.62 crore to the accused, Purna Chandra Panda, as the cost of land. But he neither provided the land nor returned the money to the organisation," said an EOW official.
The plotted scheme called "Defence Intercity Vatika" lured the investors by promising a compound wall, drainage, roads, water facility and electricity.
The NGO, floated by retired Lt. Col Rakesh Rana, a recipient of Kirti Chakra, has promised to hand over the plots to the investors by June 2012 with valid documents.
The investigating agency said the NGO had engaged the real estate firm for development and promotion of the plotted scheme.
A retired defence personnel Patitapaban Biswal had lodged a complaint with the EOW against the developer for not providing land on July 27 this year.
"The accused was arrested under Sections 471 (using as genuine a forged document), 120B (punishment of criminal conspiracy), 467 (forgery of valuable security), 468 (forgery for purpose of cheating) and 420 (cheating), 406 (punishment for criminal breach of trust) of Indian Penal Code and Section 6 of the Odisha Protection of Interest Of Depositors Act," said superintendent of police, EOW, R. Pattnaik.
Sources in the EOW said that the NGO had promised 50 per cent discount on plots for those getting Kirti and Shaurya Chakras. "We will bring Panda on remand to extract more information related to the project. We are also trying to apprehend the office bearers of the NGO," said an EOW official.
