SFIO branch in Odisha to probe chit fund scam

Sachin Pilot pitches for a robust mechanism to recover money from the dubious companies which have fled away with public deposits

In the wake of alleged frauds involving thousands of crores by the chit fund companies in the state, Sachin Pilot, Union Minister of State (independent charge) for corporate affairs  on Friday announced the setting up a branch of Serious Fraud Investigation Office (SFIO) in Odisha to assist the state government in probe into the ponzi schemes.

“We felt that it is important to have SFIO in eastern India  and an office will be opened in Odisha shortly as lots of chit fund companies  and ponzi schemes are operating in the eastern part of India,” said Pilot after attending an Investor Protection and Awareness Programme. The awareness programme was organized by Union Ministry of Corporate Affairs in association with the Institute of Company Secretaries of India (ICSI).

SFIO is a multi-disciplinary organisation under Ministry of Corporate Affairs which investigates into serious financial frauds. It presently have branches in Delhi, Mumbai, Chennai and Hyderabad.

The Union minister pitched for a robust mechanism to recover money from the dubious companies which have fled away with public deposits, so that the money could be returned to the gullible investors who have fallen prey to such companies.

On the demands of CBI inquiry into the chit fund scam, Pilot clarified that the Union government is open for such an enquiry provided the recommendations came from the state government.

Taking a dig at the judicial commission instituted by the state government for probe into the chit fund scam, Pilot said, the judicial commission doesn’t have the required power to inquire the criminal aspect of the case. “Air tight cases must be framed against those arrested so that the culprits do not get bails,” the minister said.

Investigations have been ordered against 120 money swindling companies in the state and more than 300 persons have been taken to custody. Declining to comment on the nexus of bureaucrats, politicians and other influential people with the fraudulent companies, he said,” it is suffice to say that proper monitoring was not done that resulted in flourishing of these companies.”