As a measure to safeguard the interest of the depositors, the State Government appointed designated judges in four special courts to be functional soon in Cuttack, Baleswar, Brahmapur and Sambalpur.
According to Additional Chief Secretary Finance UN Behera, four Additional District and Session Judges were appointed as designated Judges of special courts established to hear cases on fast track basis, relating to the depositors who were victims of unscrupulous chit fund organisations. The designated Judges have been empowered as per the Chit Fund Act to provide relief to the genuine depositors by attaching the properties of the fraudulent chit fund companies, he informed. Behera said that the State Government had already framed rules for the implementation of the Odisha Protection of Interest of Depositors (in Financial Establishments) Act-2011 under which the Additional District and Sessions Judges are empowered to deal with attachment ofproperty of Non-Banking Financial Companies and their distribution.
As per provision of the law, the competent authority would seek thedesignated courts’permission and take custody of the seizurefollowing which the latter will hold hearing to decide the auction aswell as reimbursement process. Thereafter, it will prepare a list ofthe genuine depositors for repayment.
As many as 10 lakh depositors have been the victim of the fraudulent chit fund companies. Meanwhile, Justice Patra Commission inquiring the multi-crore chit fund scam has received around eight lakh complaints with affidavits from the victims who have lost their deposits.