Petition seeks stay on chit fund probe

Taking exception to the Odisha government's decision to probe the chit fund scam by a former high court judge, a petitioner has moved the Supreme Court, praying the apex court to grant a stay on the July 9, 2013, notification announcing the judicial probe.

"Announcement of the judicial commission is wholly uncalled for. It clearly means two things - government has no faith in its own investigating machinery and deliberately wants to oust them with the fear that its ministers, MLAs and powerful officers would be exposed. Since the inquiry commission is not constituted by a resolution passed by the state legislature, the commission is invalid," pleaded petitioner Alok Jena.

He pointed out that the inquiry commission has no value except providing guidance to the government and the commission being a fact finding body cannot adjudicate the rights of the parties nor can suggest measures to safeguard the interest of the investors.

On July 8, chief minister Naveen Patnaik announced the setting up of an inquiry commission headed by retired Chief Justice of Sikkim High Court R K Patra to probe the multi-crore chit fund scam.

Jena had earlier filed a petition in the Supreme Court seeking CBI probe into chit fund scam. The court after the preliminary hearing has issued notices to the state government for response.