The Economic Offences Wing (EOW) of the Odisha Crime Branch has arrested Pratap Kumar Rout, the Odisha head of Hedgex Fund, for his alleged role in a Rs1,000-crore investment fraud that duped over three lakh investors across 10 Indian states.
Rout was apprehended in Cuttack and will be produced before the Designated Court under the OPID Act. He faces charges under multiple provisions, including Sections 420, 467, 468, 471, and 120-B of the IPC, along with Sections 4–6 of the PCMCS (Banning) Act, Section 66(D) of the IT Act, and Sections 21(1)(3) and 23 of the BUDS Act.
The case originated from a complaint by Bijay Kumar Panigrahy, who alleged that he invested Rs92.6 lakh in Hedgex Fund LLP, influenced by Rout’s assurances of monthly returns ranging from 11% to 18%. After a few months, the company abruptly stopped operations, leaving investors unable to withdraw their funds.
According to the EOW, the company operated a Ponzi-style scheme, initially offering modest returns to gain investor confidence before vanishing with deposits. The fraudulent network extended to Andhra Pradesh, West Bengal, Assam, Madhya Pradesh, Uttar Pradesh, Rajasthan, Gujarat, Tamil Nadu, Delhi, and Odisha, impacting over 3 lakh depositors.
The total defrauded amount is estimated to exceed Rs1,000 crore. To sustain the deception, the company floated several sister concerns, including Kaushalaya Foundation, Lavya World, Frix Market, and Lavya International between 2023 and 2024.
Investigators revealed that Rout and other senior members used mule and third-party accounts to hide the money trail and evade detection. The EOW has seized incriminating documents and digital evidence from Rout’s possession as part of ongoing investigations.
Authorities are now tracing assets linked to the accused and urging other victims to come forward with complaints.
