File status report on chit fund scam: High Court

Published: 04th July 2013 10:49 AM  |   Last Updated: 04th July 2013 10:49 AM   |  A+A-

The Orissa High Court on Wednesday directed the Economic Offences wing (EOW) of Crime Branch and the police to file status reports individually indicating the stage and progress of investigation into the  alleged chit fund scam, in connection with six companies, by July 15.

A division bench of Chief Justice C Nagappan and Justice P Mohanty has also directed the agencies to explain the necessity of continuing with the sealing of the business establishments of Basil International Ltd, Green Ray International Ltd, GLP Developers Ltd, Micro Finance Ltd, Micro Leasing & Funding Ltd and Milan Developers Ltd.

The companies have approached the court challenging the sealing of business premises and freezing of bank accounts by the investigating agencies. The counsel appearing for Green Ray Company stated before the court that it dealt with  trading of gold and silver and had no business involving chit fund or financial transactions.

Basil International and other companies submitted before the court that the police have unilaterally seized the articles and have locked the business premises at different places of the State. Such action amounted to gross violation of Article 19(1) (g) of the Constitution of India.

Confronting the submissions, Advocate General Ashok Mohanty brought various legal provisions to the notice of the court and stated that while investigation is going on, allowing opening of business premises would be counter productive.

The companies may start indulging in the same business activities that would not be in the interest of general public and investor, he stated.

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