Ponzi: Government moots corpus fund, former judge to probe fraud

Govt also assures of setting up special courts for speedy trial of all chit fund cases in the State

Published: 10th July 2013 10:43 AM  |   Last Updated: 10th July 2013 10:43 AM   |  A+A-

As the chit fund scam  became increasingly embarrassing for the State Government, Chief Minister Naveen Patnaik on Tuesday announced creation of a corpus fund up to `300 cr to protect the interest of the genuine small investors. The Government also named Justice RK Patra, retired Chief Justice of Sikkim High Court and former chairman, Odisha Human Rights Commission (OHRC), to head the commission of inquiry into the chit fund scam. The State Government had requested the Orissa  High Court to spare a sitting judge to head the panel. However, the court had expressed its inability to spare a judge for the probe.

 “Under no circumstances will my Government allow the genuine investors to suffer loss of their hard earned money,” the Chief Minister announced and added that the State Government is putting in place a strong legal and financial arrangement so that people do not suffer undue losses.

 Stating that the State Government will ensure free and fair investigation into all the chit fund related cases, the Chief Minister said the High Court will also be moved for constitution of some special courts for speedy trial of all these cases. Special prosecutors will be engaged for effective handling of such cases.

 Cells will function in every district in SP’s office  Besides, the SPs have been directed to meet complainants on a regular basis. The State Government is closely following up with the Centre for the Presidential assent of the Odisha Protection of Interest of Depositors (in financial establishment) Bill, 2011, he said.

The Congress, however, alleged that the Chief Minister’s announcement is another way of cheating the people. By constituting a judicial probe and creating a corpus fund, Naveen is trying to create a false impression in the minds of the depositors that their investment may be recovered, senior party leader Narasingh Mishra said, adding that his purpose will never be served.

The Biju Yuva Janata Dal (BYJD) has, however, welcomed the decision. The announcement is a historic one and will help small investors, BYJD president Sanjay Dasburma said.

Stay up to date on all the latest Odisha news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp