Odisha government admits inking MoUs with chit fund company

The Odisha government Wednesday admitted it signed Memoranda of Understanding (MoUs) with Seashore Group of companies, a chit fund player in Odisha, for various development projects.

In a written reply in the state assembly, Tourism and Culture Minister Ashok Panda said the government had signed MoUs with the company for development of five tourist destinations.

Panda said the government cancelled the MoUs after getting information from deputy inspector general of economic offence wing about Seashore's involvement in the chit-fund scam.

The CBI, probing into the chit-fund scam, has obtained files relating to the government signing MoUs with the company, he said.

Cooperation Minister Damodar Rout said his department had also signed an MoU with the Seashore for renovation and development of three defunct cold storages in Cuttack, Hindol and Dhenkanal on public-private-partnership model.

The minister said the government later cancelled the MoU after the company failed to renovate the cold storages within the prescribed time.

Seashore Group is believed to have duped gullible depositors of around Rs.1,500 crore in the state.

The CBI is also inquiring into the involvement of government officials and politicians in the scam.