Former Microfinance Ltd. MD Durga Mishra Arrested

The Central Bureau of Investigation (CBI) has arrested former Managing Director of Microfinance Ltd. in connection with the multi-crore chit fund scam in Odisha. Earlier, the CBI had raided his house in Bhubaneswar on December 8, but he had fled the spot. He had been absconding since March 2014.

Durga Prasad Mishra is associated with at least 13 companies, which deals with finance, electronics, media, roadways, steel industry, foods and spices, medical industry, construction, entertainment etc. He is also the Director of Ayush Hospitals Trauma Care Pvt. Ltd. and Micro Media and Entertainment Pvt. Ltd, which runs MBC TV in Odisha.

Microfinance Ltd. is accused of duping investors of more than Rs 500 crore across Odisha. The CBI had earlier arrested its Director Ashok Pattnaik. 13 of its top office bearers have been arrested so far. At least 13 cases have been registered against Microfinance in different districts of the state.

Microfinance Ltd. had 420 branches across Odisha, most of which have been shut down after the chit fund scam came into light. The fraud came into light following the arrest of Panchayati Raj department employee Ajay Swain, former PA of an IAS Officer and Microfinance Director Baikuntha Pattnaik on March 29, 2014. Swain had issued letters to District Collectors on behalf of the government on August 23, 2013 to allow Microfinance to continue its business operations.