Chit-fund scam: PAC asks state RoCS for interim report in 7 days

Bhubaneswar: The Public Accounts Committee (PAC) of Odisha Assembly on Friday asked the State Registrar of Cooperative Societies (RoCS) to submit an interim report on chit-fund scam in the State within 7 days.
 
The PAC which vetted documents of all the registered non-banking financial companies (NBFCs) allegedly involved in siphoning off public money and duped thousands of gullible investors in the State, has also asked RoCs to produce a whitepaper in this regard.
 
Talking to media Prasad Harichandan, president of PAC sub-committee said, “We have also directed the RoCS to present a whitepaper within one month.”
 
He added more than one crore people have been affected due to chit fund scam in the state.
 
Meanwhile, expressing concern over the approval of the NBFCs, Sanjay Das Burma, member, PAC sub-committee said, “Though the Central Registrar of Cooperative Societies has approved the registration of 23 multi-state cooperative societies that are operating in Odisha, there are no records of 7 organisations including AT Group.”
 
“We wonder on what basis the central body approved the chit-fund companies,” added Burma.
 
Sources said the Central Registrar of Cooperative Societies had empowered the State RoCS to investigate about eight such firms after money laundering activities of these firms surfaced.
 
Meanwhile the PAC has asked for a detailed report about the remaining eight companies.
 
Under the Cooperative Society Act, 1634 organisations have registered themselves in the state, of which 512 are multipurpose while 367 are credit societies.
 
In a related development, Odisha Crime Branch (CB) on Friday started interrogation of Seashore Group CMD Prashant Dash in the state capital after securing six-day transit remand from a Mumbai court yesterday.
 
Dash was arrested from Mumbai by a team of the economic offences wing of CB on Wednesday evening in connection with a multi-crore chit fund scam in Koraput distict.
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