Odisha to start refund of chit fund depositors' money soon

The state government would soon kick off an exercise to refund deposits of investors who lost their money in the chit fund scam.

Chief secretary G C Pati, who talked to the additional district magistrates (ADMs) of five districts through video conference instructed them to expedite the attachment of properties of chit fund companies. Pati also urged the finance and law departments to work together and make efforts to refund depositors' money. “The law and finance departments would come out with a procedure to refund money lost by investors in chit fund fraud cases,” Pati said.

He has directed the competent authorities and special public prosecutors to speed up the hearing process of pending cases in the designated courts as per the provisions of the Odisha Protection of Interest of Depositors (in Financial Establishment) Act, 2015 so as to complete the hearing within six months.

The sub-collectors have been directed to finalise the offset price of the attached properties within seven days so that they can be immediately put to auction after due approval of the designated courts. It has been decided that the attached properties be put to public auction through the e-auction portal of central PSU MSTC. A government release said, the Economic Offences Wing has initiated investigation in respect of 190 financial establishments. The finance department has issued interim orders for attachment of properties against 19 chit fund companies.