Odisha Trading Scam: Rs 40 Crore Fraud Uncovered as Mastermind Arrested

Indian authorities have arrested the alleged mastermind behind a sophisticated trading scheme that defrauded approximately 600 investors of Rs 40 crore, according to officials from Odisha Police's Economic Offences Wing. The arrest of Amit Mandal, captured at his residence in Bankura, West Bengal on December 31, marks a breakthrough in an investigation that has uncovered transactions worth Rs 122 crore flowing through accounts linked to the operation.

The case highlights growing concerns about unregulated investment schemes across India, where fraudulent trading platforms have increasingly targeted middle-class investors with promises of unusually high returns. Investigators say Mandal's operation initially paid out monthly returns of up to 7 percent to build trust before the scheme collapsed and the suspect disappeared.

Background and Context

Trading scams have proliferated across India in recent years, exploiting regulatory gaps and limited financial literacy among retail investors. The Odisha case follows a pattern seen in similar schemes across the country, where operators use legitimate-looking trading platforms to attract investments before vanishing with accumulated funds. According to financial crime experts, such schemes often target individuals seeking higher returns than traditional banking products offer during periods of economic uncertainty.

Key Figures and Entities

Amit Mandal, identified by investigators as the primary suspect, allegedly orchestrated the investment scheme from West Bengal while operating primarily across Odisha. According to police records, he faces charges related to fraudulent trading activities and financial misrepresentation. The Economic Offences Wing of Odisha Police, which specializes in financial crimes, led the investigation after receiving multiple complaints from affected investors. Following his arrest in a local court, Mandal was transferred to Odisha for further legal proceedings.

Legal and Financial Mechanisms

The alleged scheme operated by promising investors monthly returns of up to 7 percent through what investigators described as fraudulent trading activities. Financial records reviewed by authorities show approximately Rs 122 crore in transactions passing through bank accounts linked to Mandal, suggesting the operation's scale may have exceeded initial estimates. According to the Economic Offences Wing, the scheme initially maintained credibility by making regular payouts to early investors before eventually defaulting on payments, at which point Mandal allegedly disappeared.

International Implications and Policy Response

While centered in India, the Odisha trading scam reflects a global pattern of investment fraud that exploits digital platforms to reach broad investor bases. Financial regulators worldwide have increasingly focused on similar schemes, particularly those promising guaranteed high returns through trading activities. The case underscores ongoing challenges in cross-border regulatory cooperation and the need for enhanced investor education programs. Indian authorities have been working to strengthen oversight of trading platforms and improve coordination between state and national financial crime units.

Sources

This report draws on official statements from Odisha Police's Economic Offences Wing, court records related to the arrest, and news coverage from Devdiscourse News Desk published on January 2, 2026. Additional context comes from financial crime analysis and regulatory monitoring of investment schemes across India.