Odisha’s Economic Offences Wing Arrests Amit Mandal in Multi-Crore Share Trading Scam
Arrest of Amit Mandal
In a significant crackdown on financial fraud, Odisha’s Economic Offences Wing has apprehended Amit Mandal, the primary suspect in a substantial investment scam that has reportedly swindled millions of rupees from unsuspecting investors. The arrest followed a formal complaint by Sushant Kumar Das, who alleged that Mandal, along with his associates, enticed him and numerous others into a fraudulent share trading scheme promising enticing monthly returns between 3.5% to 7%.
Modus Operandi of the Fraud
To establish trust, Mandal executed a series of agreements and issued post-dated cheques (PDCs) to his investors, including Das. This tactic was instrumental in convincing Das to invest ₹8.5 lakhs over a period from 2022 to 2024. The deposits were funneled through Mandal’s personal accounts, under the guise of an entity he falsely claimed existed, branded as “Kalpana Financial Services.”
Initial Returns and Subsequent Disappearance
During the initial months, Mandal did disburse some returns to investors; however, this practice abruptly ceased. Investors later learned that Mandal had absconded, leaving them in significant financial distress. Investigations revealed that Mandal had also defrauded hundreds of other individuals across Odisha, accumulating large sums of money and misappropriating their investments.
Inducement Strategies
Mandal employed various strategies to lure the public into his scheme. He frequently organized meetings at different hotels in Angul and Bhubaneswar to attract potential investors, collaborating with his associates to boost his credibility. To further reassure depositors, he continued to execute contracts and issue PDCs, reinforcing their trust in his nonexistent enterprise.
Scale of the Scam
According to preliminary investigations, Mandal collected upwards of ₹120 crores from about 500 depositors in Odisha and an additional 100 in West Bengal. Currently, he is accountable for returning over ₹40 crores to these investors. His fraudulent operations spanned from 2020 to 2024, relying on the funds from new investors to pay returns to earlier ones.
The Collapse of the Scheme
By 2023, as the scheme began to unravel, Mandal ceased all payments, assuring investors that their funds would be reinvested into a new venture he claimed to have formed, called Kalpamit Consultancy Private Limited. This false reassurance eventually led to his disappearance, leaving investors devastated.
Financial Transactions Under Scrutiny
Mandal operated using personal accounts at ICICI and HDFC banks, purportedly for share trading under the name of his fictional firm. Records indicate transactions amounting to approximately ₹122 crores from his ICICI account, while other accounts remain under investigation. Additionally, a laptop was seized from Mandal, which is believed to contain vital information regarding the list of investors and the amounts they deposited.
The Broader Impact
This case sheds light on the alarming trend of financial fraud affecting unsuspecting individuals across the region. It serves as a sobering reminder for potential investors to exercise caution and conduct thorough due diligence before committing their hard-earned money.
Closing Thoughts
As the investigation continues, the Economic Offences Wing is determined to uncover the full extent of Mandal’s fraudulent activities. Authorities urge anyone who suspects they may have been a victim of similar scams to come forward and report their experiences, helping to protect others from falling prey to such deceitful schemes.
