Vijaya Prasad produced before court in Odisha

Visakhapatnam: Odisha police on Tuesday produced former Visakha West MLA

Malla Vijaya Prasad

at a court in

Cuttack

. The YSRC leader was arrested by the economic offence wing of Odisha crime branch from his residence in Vizag on Monday evening for his alleged involvement in chit fund case registered in Odisha in 2019.

Malla was brought to Odisha on transit and produced in the court of Odisha Protection of Interests of Depositors (in financial establishments) in Cuttack which sent him on judicial custody. His bail application is likely to be moved on Monday. The Odisha police has sought his custody for interrogation.

Malla was allegedly involved in a Rs 1,200 crore chit fund scam in which thousands of depositors from Andhra Pradesh, Odisha, Chhattisgarh and Telangana lost their savings.

He has been accused of opening branches of his company — Welfare Building and Estate Limited — in several parts of Odisha and collecting money from people with promises of high returns.