We are going to open an office of the Serious Fraud Investigation Office (SFIO) in Odisha within a couple of weeks to investigate serious cases of fraud,” said Union Corporate Affairs Minister Sachin Pilot while addressing mediapersons here on Friday.
He said the Serious Fraud Investigation Office (SFIO) now has four offices in New Delhi, Mumbai, Chennai and Hyderabad, but there is no single office in the eastern part of the country. So, the Ministry decided to open an office in Bhubaneswar, he added.
Pilot emphasised on criminal investigation in the chit fund scam. “I don’t think the Judicial Commission of Inquiry (which the State Government has ordered) has the power of criminal investigation,” he said, adding, “Only arresting and then preparing charge-sheets against the fraudsters would not solve the purpose unless until they get exemplary punishment for duping the investors and it would be possible through criminal investigation.”
Pilot also suggested stringent action against the owners of chit fund companies who cheated the investors. He agreed that the State Government has procedural lacunae due to which the chit fund firms spread their fraudulent empire to dupe the poor investors.
Earlier, Pilot attending an Investors’ Protection and Awareness Meet here said his Ministry is constantly trying to inform and educate investors, particularly the small investors, in far-flung areas of the country, where the practice of investment in companies and Capital Market is relatively recent.
Instances of duping of inexperienced investors through dubious money circulation schemes in the recent past have brought home the need to redouble such awareness efforts, he said.
He said the Central Government is determined that such unscrupulous activities are brought to an end. Investigations by the Serious Fraud Investigation Office (SFIO) into 54 such companies are already on and would be fast-tracked to book the offenders, he added.
Pilot asked for a progress report on the investigation by the State Government agencies into the chit fund companies.