Odisha EOW Cracks Rs 1,000 Crore Ponzi Scam, Nabs Key Accused in Multi-State Fraud
In a sweeping crackdown on financial crime, the Economic Offences Wing (EOW) of Odisha Police arrested Pratap Kumar Rout, the Odisha head of Hedgex Fund LLP, for orchestrating one of India’s largest Ponzi schemes.
The arrest took place in Jhinkiria near Cuttack, following a complaint by retired investor Bijay Kumar Panigrahy, who lost Rs 92.60 lakh in the scam.
Hedgex Fund LLP, registered in Goa in 2023, lured over 3 lakh investors across 10 states with promises of monthly returns between 11% and 18% through alleged Forex trading.
played a pivotal role in collecting funds via bank transfers, cash deposits, and hawala channels. Promotional seminars in Cuttack and Bhubaneswar helped build trust among victims.
The scheme collapsed shortly after collecting crores, with Rout offering empty assurances of refunds. Investigations revealed a classic Ponzi setup, with sister entities like Kaushalaya Foundation and Lavya World used to mask operations and funnel money through mule accounts.
Authorities seized incriminating documents during the raid, and Rout faces charges under the IPC, IT Act, Prize Chits Act, and the BUDS Act. He will be produced before the OPID Court in Cuttack. The EOW anticipates further arrests, including Goa-based partners Dinesh Kumar Jain and Kuldeep Singh Panwar.
With over Rs 139 crore lost in Odisha alone, officials urge victims to come forward. As one defrauded depositor put it, “We trusted the returns; they trusted our greed.”
