Chit fund scare returns to haunt depositors

Bolangir: At a time when scores of chit fund firms like AT & Seashore are facing CBI action with their officials cooling heels in jail for duping lakhs of innocent depositors, new ponzi firms are still emerging to target gullible investors in Odisha.

As per sources, Adarsh Cooperative Societies Limited, a Gujarat-based mobile banking company organised a membership camp at Bolangir Law College on Thursday following which some activists raised protest and filed a complaint at town police station alleging it to be a chit fund company.

A local activist forum comprising investors duped by ponzi firms urged the administration to stop the company from starting its operations.

“On one hand the company says it is a cooperative society but it collected membership fees through awareness camps. It does not possess legal papers to do business in Odisha in general and Bolangir in particular. Neither do they have any written permission from concerned authorities - the Collector or SP. It is also yet to open its branches. Apprehending any fraud we intimated the administration,” convenor of the forum, Bibhudutta Mishra said.

However, confirming the authenticity of its business, regional head of Adarsh Cooperative Societies, Rajeev Kumar Patnaik said, “We deal with mobile money application just like Zee Money, Axis Money and have been operating since 1999. We are a registered company with over 800 branches operating throughout the country and have businesses worth around Rs 20,000 crore.”

“People confuse us with chit funds and fear that we might run away with their money,” he said.

Meanwhile, the police said action would be taken after proper investigation into the matter. “We have asked them to furnish their original papers and legal documents since they are an outside company following which we will take necessary steps,” IIC of Bolangir Town PS, Gokulananda Sahu said.