ED Raid / Former MLA under ED Scanner in Chit Fund Scam

Bhubaneswar, Aug 5: The Enforcement Directorate (ED) has conducted raids at the residence of former Visakhapatnam legislator M Vijay Prasad in connection with a massive chit fund scam.

The operation was carried out by ED’s Bhubaneswar unit, intensifying the ongoing probe into fraudulent financial activities that have affected thousands of depositors across Odisha.

Vijay Prasad, who previously served as the Managing Director of Welfare Building and Estates Pvt. Ltd., is accused of orchestrating large-scale financial fraud.

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The company allegedly lured investors with promises of high returns and land allocations, opening branches in Bhubaneswar, Cuttack’s Narasinghpur, Nayagarh, and other regions.

However, depositors claim they were neither repaid their money nor provided the promised land, leading to widespread allegations of cheating.

Back in 2021, Odisha Crime Branch’s Economic Offences Wing (EOW) had arrested Vijay Prasad in connection with the scam. He was later granted conditional bail by the High Court.

Investigations revealed that the fraud ran into hundreds of crores, with its network spreading beyond Odisha into other states. The company’s schemes reportedly duped countless small investors, many of whom lost their life savings.

The ED’s latest action aims to trace the money trail, identify assets acquired through fraudulent means, and uncover the extent of the scam.

Officials are probing how the siphoned funds were diverted and whether other individuals or entities were complicit. Sources indicate that the scam’s magnitude is far greater than initially estimated, with its impact stretching across multiple states.

Authorities have assured that efforts are being made to recover the defrauded money and deliver justice to the victims. The ED, along with other investigative agencies, is expected to intensify scrutiny of Vijay Prasad’s financial dealings, properties, and associates.