Chit fund scam: Odisha asks counsel to collect info from SC

After cracking the whip on five unscrupulous financial entities, the Odisha government has instructed its advocate-on-record (AOR) in the Supreme Court to collect necessary information from the apex court on unauthorised collection of public deposits.

The Justice R K Patra Commission of enquiry probing into the multi million crore chit fund scam has urged the state government to collect information/documents from the apex court, Odisha High Court, Securities & Exchange Board of India (Sebi) and Reserve Bank of India (RBI) in connection with the scam. The commission has received more than 800,000 affidavits pertaining to duping of investors' money by shady financial companies.

"I am directed to request you to kindly take necessary steps for collection of the required information/statements and documents regarding unauthorised collection of public deposits in the state from the Supreme Court of India and furnish the same to the finance department by January 7, 2014”, Sidhartha Kanungo, joint secretary (finance) wrote to Shibashish Mishra, AOR, Supreme Court.

Last week, the Crime Branch of state police handed over all documents relating to illegal operations of Flourish India to the state finance department for confiscation of the properties.

Earlier, the Crime Branch had submitted the documents of Saradha Group, Sastra Enterprises Pvt Ltd and Seashore Group to the finance department for attachment of properties.

The Odisha Protection of Interests of Depositors (in Financial Establishment) Act, which is implemented in the state since September this year, contains extensive safeguards for protecting the small investors from the malpractices of fraudulent financial entities.

The Crime Branch has  seized  cash worth Rs 86 lakh, Rs 127 crore by freezing bank accounts, 203 kg silver, 1583 kg gold and 22 four wheelers .

The land bank seized by the probe agency include 204 acres from Seashore Group, 1364 acres  from Sarada Group, 234 acres from Artha Tatwa group, 24 acres from Flourish India  and a whooping 5,433 acres from Sastra Enterprises Pvt Ltd.