Commission submits interim report on chit fund scam

CUTTACK: Justice M M Das commission, probing the multi-crore chit fund scam, on Wednesday submitted a detailed list of about 8,000 small investors, recommending the state government to refund their money at the earliest.
Secretary of the commission Devraj Rout submitted its interim report to the home department on Wednesday. Sources said in the report, which runs over 500 pages, that the commission has provided information to the state government about the 8,000 small investors identified by it and recommended the government to refund their money.Small investors are those who have invested less than Rs 10,000 in the chit fund companies. The commission has fixed modalities to ensure refund of money to these duped investors. "The interim report mainly contains recommendations to ensure refund of money to small investors," said the commission's secretary Devraj Rout.
Rout also hinted that the commission will file interim reports on a regular basis before the state government. "The commission has received about nine lakh affidavits from duped investors. Hence as the probe proceeds further, interim reports will be submitted at regular intervals to the state government," added Rout. Sources said that since it is practically not possible to submit one report compiling all details, the commission has streamlined the procedure and decided to submit its interim report in a phase-wise manner.
"Ensuring refund of money to genuine small investors who have lost their hard earned money to these Ponzi firms is the top priority of the commission," said an official of the commission.
The commission has received about nine lakh affidavits from duped investors. But it has so far managed to examine over 26,000 affidavits and identified about 8000 small investors among them. The interim report is based on these examined affidavits. So far, the commission has identified 104 Ponzi firms, which duped investors in the state and has issued showcause notices to at least 88 of them. Sources said the economic offences wing of crime branch is not able to provide whereabouts of 16 Ponzi firms due to which the commission is not able to summon them. The commission has provided all these details in the first interim report submitted by it.
Justice Das had recently courted controversy by making adverse remarks against the duped investors. Investors and politicians had criticised Das for his remarks and alleged that the victims have lost faith on the commission. The interim report is being seen as an attempt to pacify the investors.
The state government had formed the one-man commission to probe the multi-crore chit fund scam in July 2013. Initially, the commission was headed by retired judge of Orissa HC R K Patra but after his demise last year, Justice M M Das was appointed as the head of the commission.