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Chit fund cos approach probe panel to return investors’ money

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Cuttack: Non-banking financial companies (NBFCs), which are facing legal scrutiny for unauthorised collection of public deposits, are now approaching the Justice R K Patra Commission here seeking its permission to return the investors’ money.

According to sources, a Kolkota-based company has already returned over Rs 32.56 crore to Odisha investors after taking permission from the judicial commission of inquiry. The Prayag Infotech High-rise Limited has returned the money to at least 18,596 investors, they said.

The sources further informed that another company, Rose Valley Hotels and Entertainment Ltd has also expressed its desire to return money to its investors and accordingly, the company has placed a request before the Commission in the form of an affidavit.


It may be mentioned here that the Odisha government in July last year had set up the judicial commission headed by former Chief Justice of Sikkim High Court to probe into the fraudulent chit fund activities in the state.

The Commission was asked to identify individuals and entities indulging in these illegal activities and to find out involvement of influential persons protecting and promoting such activities in the state.

Meanwhile, the Commission had received nearly ten lakh affidavits from different persons and after scrutiny of over 1.5 lakh affidavits, at least hundred persons were issued notices to appear before the Commission depose before it, sources said.