Odisha to expedite steps to attach properties of defrauding firms

These firms that have duped more than half a million unsuspecting people through collective investment schemes

After framing rules for implementing the Odisha Protection of Interests of Depositors (in Financial Establishment) Act, the state government is gearing up to attach properties of defrauding firms that have duped more than half a million unsuspecting people through collective investment schemes.

"We have framed the rules under the Act. Now, the government is fast tracking steps to attach properties of the fraudulent firms and also to return the money of the depositors. Four additional district judges of Cuttack, Balasore, Sambalpur and Berhampur have been declared as designated courts. Moreover, the additional district magistrates (ADMs) of these four districts have been declared as the competent authorities. These ADMs are empowered to take steps for attachment of properties”, said U N Behera, additional chief secretary (finance) told reporters.

The Odisha Protection of Interests of Depositors (in Financial Establishment) Act contains extensive safeguards for protecting the small investors from the malpractices of fraudulent financial entities.  Also, it has various provisions to take stringent action against the offenders.

Widespread incidents of embezzlement of public money by shady institutions threw the government into a tizzy besides brewing widespread public resentment.

Though the state assembly had passed the Bill in 2011, it was awaiting the President's nod which was obtained in August this year.

To probe the multi-crore chit fund scam, the state government had constituted an enquiry commission headed by retired Chief Justice of Sikkim High Court R K Patra. The commission's office has been flooded with over 700,000 petitions. A corpus fund of Rs 300 crore has been announced to give relief to the genuine small investors who have lost their money in the scam.

As per government estimates, 650,000 people have been duped to the tune of Rs 4,375 crore between January 2012 and June 2013, by the chit fund companies operating in the state. The state police and the Crime branch have taken action against 127 firms, filed 280 cases and arrested more than 300 persons for involvement in the illegal money making schemes.