Chit fund scam: Returning money to investors a complex issue, says Odisha Police
Though the Crime Branch of Odisha Police have launched statewide raids on chit fund companies, other non-banking financial institutions and have arrested about 100 people, it was not sure about return of money to investors.
Balasore: Though the Crime Branch of Odisha Police have launched statewide raids on chit fund companies, other non-banking financial institutions and have arrested about 100 people, it was not sure about return of money to investors.
"It is a complex issue. No specific commitment can be made on this matter as it involves many legal complications," additional director general of police (Crime Branch), BK Sharma told reporters here.
Sharma said he could not give any assurance in the matter of returning money to investors who feel cheated and duped by chit fund companies and other NBFIs in the state.
There should be requisite legislation in place in order to return money to investors, he said.
Stating that enforcement was part of the actions taken to check cheating of investors, Sharma said, "People should be made aware not to invest their hard earned money in chit fund companies based on false promises."
Sharma who was here today to review the ongoing investigation against some chit fund companies said, a number of cases have been registered against some chit fund companies and investigation is in progress.
He, however, admitted swindling of a large amount of public money in the process through false promises.
Meanwhile, All India Trade Union Congress (AITUC) of Balasore branch demanded a CBI inquiry into the matter and immediate return of money to poor investors.
Jayant Das, president of Balasore AITUC, demanded that a thorough impartial investigation is required in the case as questions are raised on political patronage to such cheating companies.