Commission issues showcause notices to six chit fund companies


BHUBANESWAR: Justice MM Das Commission of Inquiry, probing the multi-crore-rupee chit fund scam in Odisha, has served show-cause notices to six chit fund companies to record their statements before it on refunding of depositors money.

The Commission has asked their officials to record their statements before it on March 11.

The Commission on Saturday issued the Welfare Buildings and Estates Limited, Utkal Financial and Consultancy Service Private Limited, Stock Guru India, Shine India, Simanchal Multi Purpose Co-operative Limited and National Multipurpose Self-Help Co-operative to appear before it.Commission issues showcause notices to six chit fund companies

It has asked the companies to reply that why the small depositors (Rs 10,000) will not be refunded their deposited money.

The Commission also heard the case on refund of deposit money of small investors by another chit fund company, Prayag Infotech.

In an affidavit filed during the hearing, officials of the Prayag Infotech informed the Commission that they have already refunded the principal deposits to over 700 investors while 150 investors have been refunded their principal deposits through cheque on Saturday.

They also informed that the company had taken steps to refund the deposits of the remaining investors.

Out of a total of 8.17 lakh affidavits verified by the Commission, scanning of 7.22 lakh affidavits has been completed. The Commission has prepared a list of investors who had deposited less than Rs 10,000 in the chit fund companies, said sources.