District police asked to inform about NBFCs

The issue was discussed at the meeting of the state level coordination committee on NBFCs chaired by Chief Secretary A P Padhi here on Wednesday.

Published: 15th September 2016 11:43 PM  |   Last Updated: 15th September 2016 11:43 PM   |  A+A-

BHUBANESWAR: The State Government has directed the Registrar of Cooperative Societies to take stringent action against cooperative societies indulging in illegal banking business.

Even as mobilisation of deposits by Non-banking Financial Companies (NFBCs) and cooperative societies is banned, collection of money by some cooperative bodies from nominal members have come to the notice of the government.

The issue was discussed at the meeting of the state level coordination committee on NBFCs chaired by Chief Secretary A P Padhi here on Wednesday.

Padhi directed the Crime Branch of Police to instruct district police to keep strict vigil over illegal collection of money from people by any company or cooperative society and report the State Headquarters in every fortnight.

Development Commissioner and Additional Chief Secretary Finance R. Balakrishnan suggested for developing another line of information sharing from Panchayat to State levels.

The meeting discussed about model standard operating procedure (SOP) for investigation into cases under Odisha Protection of Interests of Depositors (OPID) Act and coordination among regulating as well as enforcing agencies.

Registrar of Companies (RoC) told the meeting field inspection is being undertaken regularly to locate the existence of such companies. The RoC said actions have been taken for verification of the registered office address and existence of around 270 companies. So far 133 have been found to have no existence. Show cause has been issued against 85 companies.

The SEBI representative informed that orders have been passed against 21 entities for allegedly mobilising deposits in the state.

The Chief Secretary further advised to intensify awareness building activities about newly emerging companies in markets giving alluring offers to the public.


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