Ponzi Scam: Orissa HC Grants Conditional Bail To Former Andhra MLA

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Cuttack: The Orissa High Court on Monday granted conditional bail to former Visakhapatnam West MLA, Malla Vijay Prasad, in connection with Wellfare Buildings and Estates Pvt Ltd ponzi scam in Odisha.

The High Court’s bail conditions include submission of documents of land worth Rs 30 lakh along with 2 sureties of Rs 1 lakh each. Besides, the ex-MLA also been directed to return money of depositors in 7 days if refund is sought.

As per reports, the former Visakhapatnam West MLA, who is the managing director of Wellfare Buildings and Estates, was arrested from his residence at Seethammadhara in Andhra Pradesh by the Economic Offences Wing of Odisha CID on September 6.

Prasad, currently chairman of Andhra Pradesh Education and Welfare Infrastructure Development Corporation, and two directors of the firm are accused of duping more than 150 depositors to the tune of over Rs 2 crore in Bhubaneswar, Narasinghpur and Nayagarh between 2009 and 2014.

The huge amount of money collected fraudulently from the investors was allegedly utilised by Prasad to produce Telugu films under the banner of Welfare Creations.

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