Odisha govt to keep strict vigil on non-banking companies collecting public money

BHUBANESWAR: The Odisha government on Monday directed the district collectors and SPs to keep a strict vigil on the activities of non-banking companies, who have indulged in duping the depositors under the pretext of higher returns.

It was decided at the state level coordination committee on checking the illegal public deposit and money circulation activities under the chairmanship of Chief Secretary Aditya Prasad Padhi.

The issues relating to stopping of illegal public deposit by non-banking companies, duping the people under the pretext of higher returns and rewards against the deposits, the new ways adopted by vested interest groups to cheat people, the collection of public money by multi-state cooperative societies were discussed. Besides, the strategies were worked out to check such activities.

Padhi directed Special DG Crime Brach B.K. Sharma, present in the meeting to ask the Superintendents of Police and Collectors of various districts to keep a strict vigil on the activities of the non-banking financial entities including multi-state cooperative societies and fake insurance companies who are trying to cheat people.

The Inspector In-charge of all police stations and SPs have been asked to give a monthly report on this aspect and take stringent proactive actions to prohibit these activities. Chief Secretary also directed the Registrar Cooperative Societies Dhiren Kumar Pattanik, present in the meeting to ban the collection of deposits from nominal members by cooperative societies and stop all sorts of illegal collection of money through cooperative societies. Development Commissioner and Additional Chief Secretary Finance R. Balakrishnan suggested bringing about necessary amendments in cooperative rules enabling the authority to impose punitive actions against the offenders.

Balakrishnan also emphasised on the intensification of the investors awareness camp and financial literacy at Panchayat and village levels. He said that in the first phase, each district collector had been provided with Rs.1 lakh to start the awareness activities like walling, pestering, street corner meetings, etc. More funds would also be made available to the districts depending on their field-level action plans.

The meeting reviewed the progress of the activities against the decisions taken earlier by the committee. It was seen that RBI had requested all leading Odia News Papers to do due diligence while publishing advertisements of the entities offering a very cheap rate of interest or very high rate of returns on the deposits. The Regional Director RBI P.K. Jena informed that almost all the major Odia dailies accepted the request and stopped such advertisements.

Chief Secretary appreciated the efforts and said that all the agencies dealing with public advertisements would also be requested accordingly. It was found in the meeting that a new trend of money cheating had started from the neighbouring states under the guise of producer companies. The list of such incorporated companies was collected from Registrar of Companies, Govt of India and sent to all SPs with the direction to keep close watch over their activities.

Available data show SEBI has passed orders against 23 entities in Odisha for illegal public fund mobilisation. Sources say, 217 illegal companies operating in Odisha have been taken to task by various agencies like State Economic Offence Wing, Crime Branch and other State Police stations. The cases are being followed up expeditiously for attachment of properties of these companies.