Panel on chit fund fails to track 560 firms
TNN | Mar 10, 2019, 04:01 ISTCuttack: The Justice Madan Mohan Das Commission has failed to track down 560 dubious financial companies that had apparently become non-existent after duping more than 1.5 lakh small investors, forcing the commission to issue public notices in connection with the claims.
Commission secretary Devraj Rout said issuing of public notices had become expedient to give the companies an opportunity of hearing before passing order on the claims made by the investors, who had filed affidavits.
“In case of no response to the public notices by the companies on the respective dates assigned to them, the commission will issue ex parte orders identifying the investors eligible for compensation,” Rout told TOI on Saturday.
The commission is identifying duped small investors with genuine records of deposits of Rs 10,000 and below from among the around 8.76 lakh affidavits received by it in the first phase.
The process involves serving notices to the alleged companies named in the affidavits to show cause as to why the claims of the investors should not be accepted and they should not be considered by the commission as genuine investors. And for that commission had sought the help of the Economic Offence Wing (EOW) of the State CID-Crime Branch for the addresses of the sham companies named in the affidavits received from the investors.
After receiving the addresses of several companies, the commission issued notices by post. But in most cases the notices were returned as not served because the addresses were either incorrect or the office premises were found locked or were non-existent.
“The public notices have been issued to two categories of companies — one to companies to whom notices issued by registered post were returned back not-served by the postal department and another to companies in the case of which the EOW had not been able to provide their addresses”, the commission’s secretary said. The public notices were issued on March 6, and those have been published in newspapers on Saturday.
Commission secretary Devraj Rout said issuing of public notices had become expedient to give the companies an opportunity of hearing before passing order on the claims made by the investors, who had filed affidavits.
“In case of no response to the public notices by the companies on the respective dates assigned to them, the commission will issue ex parte orders identifying the investors eligible for compensation,” Rout told TOI on Saturday.
The commission is identifying duped small investors with genuine records of deposits of Rs 10,000 and below from among the around 8.76 lakh affidavits received by it in the first phase.
The process involves serving notices to the alleged companies named in the affidavits to show cause as to why the claims of the investors should not be accepted and they should not be considered by the commission as genuine investors. And for that commission had sought the help of the Economic Offence Wing (EOW) of the State CID-Crime Branch for the addresses of the sham companies named in the affidavits received from the investors.
After receiving the addresses of several companies, the commission issued notices by post. But in most cases the notices were returned as not served because the addresses were either incorrect or the office premises were found locked or were non-existent.
“The public notices have been issued to two categories of companies — one to companies to whom notices issued by registered post were returned back not-served by the postal department and another to companies in the case of which the EOW had not been able to provide their addresses”, the commission’s secretary said. The public notices were issued on March 6, and those have been published in newspapers on Saturday.
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