Chitgate: ‘Ambiguity’ forces modification of refund format

Bhubaneswar: Unable to start the online application process due to ‘faulty’ guidelines for refund of chit fund money to small investors, the Odisha government has decided to issue an amended notification.

Though it has not been confirmed officially, it is learnt that Finance department will soon issue a guideline in this regard.

In October last, the Odisha government had issued guidelines for identification of genuine depositors so that they can be returned some of their money invested in chit fund companies.

Among other mandatory provisions, the guidelines asked the depositors to give ‘details of deposits made with the financial establishment’ and ‘attach photocopy’ of all money receipts they received from the company as proof of investment.

But the depositors felt that it will be a herculean task for them to scan and upload all the money receipts, which may run into over one hundred in a single case, to support their claim to get money back from the government.

After observing the issue, the government has decided to amend the rules to ease the process.

Though Finance minister Pradeep Kumar Amat did not confirm the development, he stated that the government is trying its best to refund money to the small investors at the earliest.

“As promised, we will soon complete the process and start disbursing money to small investors,” Amt said.

While notifying for the reimbursement, the State government had said that field verification teams will be mandated to seek identification proof of the depositors, proof of deposits made, mode of payment and amount due from the chit fund companies. The teams will also try to find out if the chit fund companies had refunded any amount to the depositors.

Officials said reimbursement will begin from the Rs 300-crore corpus fund constituted by the State government for the purpose. Later, sales proceeds from e-auctioning of the attached properties of scam-tainted firms will be used to cover more investors.