 "Govt knee deep in chit fund scam, says oppn")
The Opposition today launched a scathing attack on the government in the assembly during a discussion on the chit fund scam that has left over 600,000 people duped by fraudulent companies.
Initiating an adjournment motion on the matter, senior Congress leader and Opposition chief whip, Prasad Harichandan said, “So far, no action has been taken against the defrauding companies that have hoodwinked the innocent investors. There has been a massive loot of depositors' money for the past 12 years and this cannot happen without the involvement of the government.”
Harichandan referred to a letter dated November 5, 2002, where the cooperation department had called for imposing restrictions on registration of cooperative societies. The government, however, did not heed the suggestion nor did it amend the prevailing law on cooperative societies at that time, he said.
He alleged that the chief minister and some of his ministerial colleagues were acting as the brand ambassadors of a few chit fund companies. Only a probe by the Central Bureau of Investigation (CBI) can lay bare the facts of the scam, he told media persons outside the house.
Opposition leader Bhupinder Singh reiterated his demand for a white paper on the chit fund scam.
Referring to a writ filed in the Supreme Court in connection with the chit fund scam, Singh said, “The petition mentions the names of the ministers — Damodar Rout, S N Patra, Kalpaturu Das, Arun Sahu and BJD MLA Sanjay Das Burma claiming they are beneficiaries of chit fund companies. Let the government clarify its position on the matter.”
In his reply, finance minister Prasanna Acharya admitted that some chit fund companies have duped the people but steps are being taken to attach properties of such companies and recover the depositors’ money.
“Recently, we have got the President’s nod to Odisha Protection of Interests of Depositors (in Financial Establishment) which was passed in the assembly in 2011. The Act will enable us to take punitive measures against the guilty. The Act has provisions for imprisonment of up to 10 years depending on the nature of the guilt. To conduct an independent probe into the scam, the state government has constituted a commission headed by Justice R K Patra. A corpus fund of Rs 300 crore has also been announced to give relief to the depositors,” he added.
As per government estimates, 650,000 people have been duped to the tune of Rs 4,375 crore between January 2012 and June 2013, by the chit fund companies operating in the state. The state police and crime branch have taken action against 127 firms, filed 280 cases and arrested more than 300 persons for involvement in the illegal money making schemes.
Initiating an adjournment motion on the matter, senior Congress leader and Opposition chief whip, Prasad Harichandan said, “So far, no action has been taken against the defrauding companies that have hoodwinked the innocent investors. There has been a massive loot of depositors' money for the past 12 years and this cannot happen without the involvement of the government.”
Harichandan referred to a letter dated November 5, 2002, where the cooperation department had called for imposing restrictions on registration of cooperative societies. The government, however, did not heed the suggestion nor did it amend the prevailing law on cooperative societies at that time, he said.
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While the Reserve Bank of India (RBI) in 2004 had warned the state government to keep a close watch on the functioning of the chit fund companies, it also went unheeded, Harichandan added. Also, the government never brought out any annual report on the deposits collected by the cooperative societies and whether these deposits were secure.
He alleged that the chief minister and some of his ministerial colleagues were acting as the brand ambassadors of a few chit fund companies. Only a probe by the Central Bureau of Investigation (CBI) can lay bare the facts of the scam, he told media persons outside the house.
Opposition leader Bhupinder Singh reiterated his demand for a white paper on the chit fund scam.
Referring to a writ filed in the Supreme Court in connection with the chit fund scam, Singh said, “The petition mentions the names of the ministers — Damodar Rout, S N Patra, Kalpaturu Das, Arun Sahu and BJD MLA Sanjay Das Burma claiming they are beneficiaries of chit fund companies. Let the government clarify its position on the matter.”
In his reply, finance minister Prasanna Acharya admitted that some chit fund companies have duped the people but steps are being taken to attach properties of such companies and recover the depositors’ money.
“Recently, we have got the President’s nod to Odisha Protection of Interests of Depositors (in Financial Establishment) which was passed in the assembly in 2011. The Act will enable us to take punitive measures against the guilty. The Act has provisions for imprisonment of up to 10 years depending on the nature of the guilt. To conduct an independent probe into the scam, the state government has constituted a commission headed by Justice R K Patra. A corpus fund of Rs 300 crore has also been announced to give relief to the depositors,” he added.
As per government estimates, 650,000 people have been duped to the tune of Rs 4,375 crore between January 2012 and June 2013, by the chit fund companies operating in the state. The state police and crime branch have taken action against 127 firms, filed 280 cases and arrested more than 300 persons for involvement in the illegal money making schemes.