Termites eat into chit fund depositors’ hopes in Odisha; refund process under cloud

In an unfortunate incident, the fate of chit fund depositors in Odisha now hangs in uncertainty after termite infestation has destroyed piles of files of the Chit Fund Commission in Cuttack.

As per reports, the insects have damaged crucial records containing details of the applicants, the status of their applications, the amounts invested, and the chit fund companies in which the money was deposited. 

With these files allegedly destroyed, serious questions have been raised about how such vital information will now be retrieved.

On one hand, the State government has stepped up efforts to refund money to small chit fund depositors, while on the other, key files have allegedly been reduced to dust by termites. This has created doubts over how depositors will benefit from the government’s refund scheme.

According to a notification issued by the Finance Department, the refund process will remain open until January 31, 2026. All small depositors who were recommended by the inquiry commission but have not yet received refunds, and specifically those who had deposited up to Rs 10,000, are eligible to avail themselves of this opportunity.

Also Read: Odisha govt extends refund deadline for small chit fund victims; claims open till January 31, 2026

In addition, depositors of the Golden Land Developers group of companies who had invested up to Rs 8,000 and did not receive refunds in the first phase will also be covered under the scheme.

Eligible depositors are required to approach their respective Revenue Inspectors (RIs) with the necessary documents. The government has assured that the refunded amount will be credited within 15 days of verification.