Bhubaneswar: The former chief managing director (CMD) of Micro Finance Private Limited, Durga Prasad Mishra, appeared before the Enforcement Directorate (ED) here Monday in connection with the multi-crore chit fund scam. He was reportedly summoned by the ED earlier.
Mishra was earlier arrested by the Central Bureau of Investigation (CBI) in the chit fund scam in December 2014. Later, a special CBI court here awarded him three-year rigorous imprisonment after he pleaded guilty of his crime in July 2017. The court also directed him to repay Rs 250 crore to the duped investors. The sham firm had allegedly collected around Rs 500 crore from the investors violating the Reserve Bank of India (RBI) guidelines. The firm had promised the investors lucrative returns on their deposits, but could not fulfil the promises.
Mishra, who was serving jail term at Jharpada jail, is currently on bail. Similarly, the company’s managing director Ashok Kumar was sentenced to three years rigorous imprisonment by the special CBI court in connection with the chit fund scam in 2017.