Bhubaneswar/New Delhi: The Odisha Police’s Economic Offences Wing (EOW) has arrested a key accused in a high-value investment fraud, tracking him from West Bengal to Odisha, officials said on Friday. Amit Mandal, a resident of Bankura district in West Bengal, was apprehended on December 31, 2025, in connection with an elaborate financial racket that allegedly duped investors of nearly ₹120 crore over several years. Mandal was produced before a court in Bengal and subsequently brought to Odisha on a transit remand to face further investigation, authorities said.

The case came to light after a complaint lodged by Sushant Kumar Das, a resident of Khordha district in Odisha, revealed the extensive scale of the fraud. According to the complaint, Mandal and his associates persuaded Das to invest ₹8.5 lakh in what appeared to be a legitimate high-return investment scheme between 2022 and 2024. To secure his trust, the accused provided formal agreements and post-dated cheques as a guarantee of returns.

“The accused initially paid returns for a few months, creating a sense of credibility. But after gaining investors’ confidence, they stopped payments and went underground,” said an official from the EOW. Subsequent inquiries revealed that the scheme was far larger than initially thought, encompassing hundreds of victims across Odisha and West Bengal.

Modus Operandi of the Racket

Preliminary investigations have established that between 2020 and 2024, Mandal and his associates managed to entice approximately 500 investors from Odisha and around 100 investors from West Bengal into investing in fictitious share trading schemes. The fraudulent operation primarily relied on trust-building strategies, including organized meetings at hotels in Bhubaneswar and Angul, where investors were pitched elaborate presentations on potential returns and assured of high-profit margins.

Investors were further lured by the issuance of post-dated cheques and formal agreements, a tactic that gave the impression of authenticity and legal backing. These measures, according to officials, were crucial in maintaining credibility and masking the fraudulent nature of the enterprise for several months.

EOW investigators have uncovered that the accused collected funds in the name of a non-existent entity, Kalpana Financial Services, which served as the central façade of the operation. Funds were subsequently siphoned off through accounts linked to Kalpamit Consultancy Private Limited, as well as personal bank accounts belonging to Mandal’s associates. “These layered financial transactions were designed to obfuscate the flow of funds and make tracing the money challenging,” the EOW official said.

Scale of the Fraud

Investigators have begun scrutinizing bank accounts linked to Mandal and his associates. Preliminary examination of a single ICICI Bank account alone revealed transactions worth approximately ₹122 crore. Officials have stated that multiple other accounts, both in Odisha and West Bengal, are under verification to ascertain the full extent of the embezzlement.

“This is an elaborate financial scam, not a one-off case. Mandal’s operation spanned multiple states and involved sophisticated mechanisms to lure investors,” said an EOW official, highlighting the cross-border nature of the racket. Investigators are now working to map the entire network of the accused, including any accomplices who facilitated the collection and transfer of funds.

The Economic Offences Wing has indicated that further arrests are likely as the probe continues. Officers are also coordinating with law enforcement agencies in West Bengal, given that many aspects of the fraud originated in Mandal’s home district and the funds were dispersed across state lines.

Victims and Legal Action

Victims of the fraud were largely middle-class investors seeking higher returns amid growing market opportunities. Many invested their life savings, drawn in by assurances of safety and reliability. According to preliminary information, the scheme was operational for several years before its collapse, systematically defrauding individuals through repeated promises of returns.

Following the complaint by Sushant Kumar Das, the Odisha EOW began a thorough investigation, which ultimately led to Mandal’s arrest. The case has been registered under relevant sections of the Bharatiya Nyaya Sanhita (BNS), including provisions relating to cheating, criminal breach of trust, and criminal conspiracy.

Officials emphasized that the arrests and ongoing investigations serve both to recover the misappropriated funds and to send a strong message that financial fraud will not be tolerated. The investigation also underscores the importance of regulatory oversight and due diligence in investment schemes, particularly those promising unusually high returns.

Cross-State Coordination

Mandal’s arrest highlights the increasing need for inter-state cooperation in tackling economic offences. The fact that the accused operated in West Bengal while targeting investors in Odisha illustrates the challenges law enforcement agencies face when dealing with modern financial scams, which often exploit jurisdictional gaps and delay detection.

“The coordination between Odisha’s EOW and West Bengal authorities was crucial to apprehend the accused and prevent further financial damage to investors,” an official said. The transit remand process facilitated Mandal’s movement from West Bengal to Odisha, allowing investigators to question him regarding multiple aspects of the fraud, including the network of associates and the flow of diverted funds.

Wider Implications

Economic offences of this scale have significant implications for public trust in investment avenues and financial markets. “Schemes like these can erode confidence among small investors, making them wary of legitimate investment opportunities,” said a senior EOW officer. Authorities have urged citizens to exercise caution and perform thorough due diligence before committing funds to investment schemes, particularly those promising unusually high or guaranteed returns.

Officials are also examining potential links between Mandal’s operation and other fraudulent financial schemes in the region. Given the sophisticated methods used to collect and disperse funds, investigators believe the accused may have collaborated with other operators or engaged in similar schemes in different states.

The Odisha EOW has emphasized that the investigation is ongoing, with a focus on asset recovery and bringing all culprits to justice. Law enforcement agencies are reviewing financial records, hotel bookings, and transaction histories to identify the full network and ensure accountability.

Advisory for Investors

Authorities have cautioned investors to avoid investing in schemes that operate without proper registration or regulatory oversight. “Investors should verify entities with the Securities and Exchange Board of India (SEBI) or other regulatory bodies, and avoid relying solely on verbal assurances or signed agreements without background verification,” the EOW advised.

Meanwhile, Mandal remains in custody in Odisha as investigators continue questioning him and preparing a detailed report for prosecution. The Economic Offences Wing has stated that the case represents one of the largest cross-state investment frauds handled by the agency in recent years.

In conclusion, the arrest of Amit Mandal marks a significant breakthrough in dismantling a ₹120 crore investment fraud scheme that targeted hundreds of unsuspecting investors across Odisha and West Bengal. With investigations ongoing, authorities hope to recover misappropriated funds and prosecute all responsible parties, reinforcing the message that financial crimes, regardless of sophistication or scale, will be actively pursued by law enforcement.