Home ODISHA LATEST Team leaves for TN to study working of chit fund law

Team leaves for TN to study working of chit fund law


OST Bureau

Bhubaneswar, Aug 29

With the Odisha Protection of Interest of Depositors (in financial establishments) Bill, 2011 getting Presidential assent on August 13 this year, the Odisha government has sent a three-member official team to Tamil Nadu to study the mode of implementation of the law in the southern state since 1997 as part of its effort to ensure effective implementation of the new Act to curb fraudulent activities of chit fund companies. The government will formulate the rules based on the report of the team, sources said.

The team, led by the DIG, Economic Offences Wing (EOW) Rajesh Kumar with two members– PK Nanda, joint secretary, finance and S Kanungo, joint secretary, law– left for Tamil Nadu on Wednesday.

Apart from studying the implementation of rules, the Odisha team will also study the modus operandi of EOW with their TN counterparts, official sources said.

In the meanwhile, the state Home department has sought opinion from the Law department on setting up four courts to take up chit fund related cases.

After the Law department gives its opinion, a proposal would be sent to the Odisha High Court to decide the location of these four proposed courts. To ensure proper running of these courts, the home department will create new posts.

It may be noted that during 2012 and 2013, the EOW of the State Crime Branch and the State Police have registered 355 cases and arrested 480 persons in connection with chit fund irregularities.

Sources in the finance department said nearly 6.89 lakh depositors have invested Rs 4375 crore in several chit fund companies.