Odisha chit fund scam: Small depositors to get payout next month!

Bhubaneswar: Better late than never, Odisha government is likely to start release of compensation amount to small depositors of chit fund companies early next month.

About a month back, Principal Secretary Finance, T K Pandey in a letter addressed to all Collectors has directed for release of compensation amount to genuine small depositors as recommended by the Field Verification Team in accordance with the list furnished by Justice M M Das Commission of Inquiry probing the chit fund scam in Odisha in its Report no.1 and 2.

“I am directed to send herewith the digitized field verification reports of the list furnished by Hon’ble Commission of Inquiry in his Report No. 1 & 2 pertaining to your district as received from the IDCOL Software Ltd. The same may be verified with original field verification reports to ensure that the digitization is free of error,” reads the letter.

The letter says, “On the basis of digitized field verification reports funds are being allotted to different districts very shortly for payment of compensation to the genuine small depositors”.

The Principal Secretary Finance has asked Collectors to communicate with the department if there is any additional requirement of funds as per the field verification report since fund allocation is based on the digitization report.

Collectors have been asked in the letter to follow certain steps for release of compensation amount to identified genuine small depositors.

“Small depositors identified by the Field Verification Team shall be given prior notice indicating specific date and time to appear before the Tahasildar for execution of an indemnity bond. In the said notice the small depositor shall be asked to furnish either a cancelled cheque or the copy of the first page of his/her bank pass book showing his/her bank account details,” the letter said.

The letter asks Collectors to verify and match bank account details appearing in the submitted documents with that appearing in the Field Verification Report and if necessary corrections may be made.

Collectors have been directed to ensure that e-transfer of the exact recommended amount is made to the actual bank account of the real small depositor and the entire process is completed within a period of one month from the date of receipt of the letter.

The amount once drawn by the Collectors have to be transferred directly to the account of small depositors without intermediary parking in any bank account.

Notably, the Revenue and Disaster Management department has remitted the stamp duty payable by small depositors while executing the indemnity bond. Hence, small depositors will be required to execute the indemnity bond in plain paper in prescribed format.

“It’s better late than never. I feel as promised by the State government refund of money to small depositors on priority basis has begun,” said Advisor, Arthika Sansthamanaka Dwara Khyatigrastanka Milita Mancha (ASKMM) and Rajya Sabha MP Soumya Ranjan Patnaik in his reaction on the State government’s move.

“The State government is committed to refund money to small depositors, who have been duped by chit fund companies. Administrative work in this regard is in progress. The Commission of Inquiry is doing its job and the State government is extending full cooperation to it. The procedural work is on and the State government is making all efforts to refund money to small depositors soon,” said Finance Minister Sashi Bhusan Behera reiterating the State government’s commitment to small depositors of chit fund companies who have been cheated.

It’s worth mentioning here that the Odisha government has classified investors in chit fund companies having deposits below Rs 10,000 as ‘small depositors’.