HC issues notice to C'garh govt over chit funds scams

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The Chhattisgarh High Court today sought the response of the state government and the police on a PIL seeking a CBI probe into chit fund scams.
A bench of Justice Rajendra Chandra Singh Samant issued notice to the chief secretary, home secretary, director general of police (DGP) and all station house officer (SHOs) through the DGP seeking their reply within eight weeks, Devarshi Thakur, the counsel for the petitioners, said.
A total of 165 investors and agents who were allegedly duped by various chit fund companies, under an umbrella association 'Chhattisgarh Abhikarta Evam Upbhokta Sewa Sangh', have filed the petition demanding the probe by the Central Bureau of Investigation (CBI) into the chit fund scams, he said.

In the PIL, they have alleged that the chit fund companies flourished under the protection of the state government and duped investors to the tune crores of rupees, the counsel said.
The petition contended that instead of taking action against owners of chit fund companies, the police and the administration have been targeting innocent agents who were themselves victims of these scams, Thakur said.
Citing the cases of alleged suicide by agents of the fraud chit fund companies, the petitioners have demanded an inquiry by the premier investigation agency as it was done in the Saradha chit fund scam, he added.

While the owners and senior office bearers of the companies were roaming freely, local agents living in villages were bearing the brunt of the police, they alleged.
At least 13 agents have committed suicide due to police harassment, he said quoting the petition.