SC seeks Odisha govt reply on chit fund scam

New Delhi: The Supreme Court on Friday issued notices to five states including Odisha to reply on alleged chit fund scam by non-banking financial companies (NBFCs) which duped thousands of investors of crores of rupees under different investment schemes.
Hearing a public interest litigation (PIL) which had sought CBI probe into the scam in Odisha, the apex court asked replies from Odisha, West Bengal, Gujarat, Maharashtra and Andhra Pradesh within four weeks.
“We had sought an investigation into the fraud including involvement of politicians by Central Bureau of Investigation. The court was inclined towards our petition and the CBI counsel also expressed willingness to investigate the case stating that the scam has had huge ramifications,” petitioner’s counsel Suresh Tripathy said.
Meanwhile, four months after the fraudulent activities of the NBFCs surfaced in Odisha, the State Government on Tuesday declared to set up a Rs 300-core corpus fund to help out depositors.
Besides, an inquiry commission has also been formed headed by retired chief justice of Sikkim High Court and former chairman of Odisha Human Rights Commission R K Patra to probe the scam.
The Opposition Congress which has been demanding CBI inquiry into the scam ever since it hogged limelight also has declared to set up help desks at district levels to help the gullible investors file complaints.       
According to sources, dubious NBFCs) have swindled about 4,375 crore from 6.90 lakh depositors in the State.