Chit-fund scam: HC asks CBI to file status report

Cuttack: Close on the heels of Saradha chit fund case in Kolkata, the Odisha High Court on Monday directed investigating agency CBI to file its second status report on the Rs 580-crore chit fund scam by Bollywood actor-cum-producer Naseer Khan’s Fine Indisales company which allegedly duped 2.5 lakh investors in the state.
 
A division bench comprising Chief Justice C Nagappan and Justice Pradip Mohanty sought the report based on which it would decide on the pleas of the investors regarding return of their deposit money.
 
"CBI will file the status report in the second week of June. Based on that the bench will decide on the prayer of the investors on money refund," petitioner's counsel Bibhuprasad Nayak said.
 
The next hearing will be held in third week of June.
In December, acting on a writ petition filed by All-India Networkers Welfare Trust, Bengaluru, comprising investors from Karnataka, Andhra Pradesh and Tamil Nadu, the HC had handed over the case to CBI asking to submit a status report within three months.
 
The trust had alleged that over 4,000 of its members had invested in the Kanpur-based company and were duped with a promise of lucrative returns on their investments. Similarly, hordes of people from Balasore had also invested in the fraud company and were allegedly duped.
 
Meanwhile, concerned over the lucrative money circulation schemes by several companies which dupe gullible investors, Development Commissioner JK Mohapatra is holding a meeting on April 29 with top officials of concerned departments to chalk out a plan to prevent the progress of such dubious floated companies which have mushroomed in every nook and corner of the state.
 
“The Development Commissioner is holding a meeting with officials of CB, Finance and other concerned departments to rein in fraudulent non-banking finance companies (NBFCs) and unincorporated bodies,” a highly place source said on condition of anonymity.  
 
Crime Branch of Odisha police which has been investigating an estimated Rs 1000 crore money laundering by 20 such multi-level marketing (MLM) companies since 2011, is going to begin its crusade against such companies to ensure that the people will not lose their money.