Bhubaneswar, Oct 27 : Enforcement directorate officials Tuesday began investigation into an alleged multi-crore chit fund scam in Orissa, a senior police official has said.

"A team of the enforcement directorate has started the investigation," state inspector general of police (crime branch) Arun Ray told IANS.

The crime branch started an investigation in July after people complained that at least seven companies duped them of lakhs of rupees on the promise of hefty returns on their investment.

The police last week arrested Nasser Khan, the producer of Hindi movie "Shadow" and co-producer Shamshad Alam in Cuttack, some 26 km from here, in connection with the scam. But they were released by the Orissa High Court on bail.

The police said the film was financed with funds collected by Fine Indisales, one of the firms involved in the scam in which the actor-producer and his aide are major stakeholders.

The crime branch had filed a case against the firm on the charge of diverting the money raised through chit funds and multi-level-marketing to produce "Shadow".

It also said the companies including one by Khan have collected at least Rs. 500 crore (Rs. 5 billion) from several investors.(IANS)