HC sets deadline for forming panel to ensure return of funds by chit-funds

The Jharkhand High Court has set a deadline of 45 days for the state government to form a high-level committee to ensure the return of funds invested by people in various chit-fund companies.

A division bench of Chief Justice Sanjaya Kumar Mishra and Justice Ananda Sen while hearing a petition filed by the Non-Banking Abhiraksha Suraksha Samiti ordered the government to issue a notification informing formation of a high-level committee within the deadline set by it.

The bench also specified that the high-level committee will be headed by a former chief justice of the high court.

Other members of the committee will be the secretary of the Board of Revenue and a DIG ranked officer of the CBI, the court said in its order on Monday.

The Committee will work and start planning on how to ensure the return of money to investors who were duped by various chit-fund companies which are being investigated by the CBI.

The court will hear the matter again on November 8.

Earlier, the court had turned down a proposal of the state government which intended to form a similar committee with an Inspector General of Police of the CID and six other members.

The court was informed earlier that the CBI and the Enforcement Directorate have seized money deposited with the chit fund companies and is lying in different banks.

The money rightfully belongs to investors who have been cheated of their hard-earned money and should be returned to them at the earliest, the court said.