The Ashore Group office at Ashok Nagar in Bhubaneswar. Telegraph picture

Bhubaneswar, Aug. 2: The economic offence wing of the crime branch today conducted raids on the offices of a private company and detained four of its officials following allegations of cheating.

The Bhubaneswar-based company — Ashore Group — is into land and money circulation business. The crime branch officials have seized many documents during the raids.

The police teams raided the Ashok Nagar office of the company in the city while also searching its other office in Balasore. Sources said that the raids were also going on in two other branch offices of the company in Jajpur and Mayurbhanj.

A crime branch official said that they came across allegations that the company was cheating its customers.

After verifying the allegations, the economic offence wing found the allegations to be true and registered a case.

“We registered a case under sections 420, 120B and 34 of the Indian Penal Code and sections 4,5 and 6 of The Prize Chits and Money Circulation Schemes (Banning) Act, 1978,” said a crime branch official.

Talking about the modus operandi of the company the crime branch official said that the company used to lure people to invest in its projects assuring them of either plot of land or double the amount the clients invest.

“A person has to pay a certain amount for registration of a plot of land, which he is supposed to get after three years. The customers may also invest their money in instalments for registration of land. During this period, the company says it will pay the client some money at phases as the interest to the initial amount paid. It assures people that if they do not get their land, they will get double the amount they had paid,” said the officer.

Even a member of the board of directors of the company, Dipak Pothal, agreed to the police version on the modus operandi of their business.

But, he dismissed the charges cheating anyone or doing illegal business.

The managing director of the company, Viresh Kumar Choudhury, termed the raid as a routine verification.

“Our company is not involved in any illegal activities. We are co-operating with the officials in their work,” said Choudhury.

“We are verifying the seized documents and questioning the company officials,” said additional director-general of crime branch B.K. Sharma.