The managing director of a Calcutta-based firm was arrested by the Odisha Police for allegedly duping investors in a ponzi scheme, a statement said on Tuesday.

Jaideep Raha was nabbed from Calcutta on Monday on the basis of a complaint by Subash Chandra Pradhan, a resident of Puri district, it said.

Chit fund companies Ambitious Diversified Projects Management and OAK India Multistate Credit Co-operative Society had illegally collected money by assuring investors of a high rate of interest, according to the complaint.

Subsequently, they closed down the offices without paying the interest as well as the principal amount. From 2010 to 2014, the chit fund firm had illegally collected more than Rs 2.62 crore from 1,968 investors.

The statement of Economic Offences Wing of the Crime Branch said that of the collected amount, around Rs 1.83 crore was diverted to Jetex Oceanair Pvt Ltd, whose managing director is Raha.