The State Government on Thursday decided to go for a judicial inquiry by a sitting High Court Judge to unearth the multi-crore fraudulent money laundering and chit fund activities of dubious financial institutions, including Saradha, Sea shore and Artha Tatwa Group, etc.
Announcing a judicial commission of inquiry, Chief Minister Naveen Patnaik said that the Odisha High Court would be requested to spare the services of a sitting Judge of the court for conduct of the probe into the alleged chit fund scam.
The Commission would be requested to submit its report in three months time, he said. The State Government has made three important issues as terms of reference for the Commission of Inquiry. The terms and reference of the Commission would be to suggest measures to safeguard the interests of the genuine investors, affected by the recent incidents relating to the chit fund fraud etc.
The Commission would also be asked to probe and bring out the involvement of influential persons, including politicians, bureaucrats and other sections of the society, if any, in protecting or promoting fraudulent chit fund companies, the official sources said.
The Commission would also suggest safeguards for future to ensure financial security for the genuine investors and prevention of the menace of frauds being perpetrated by unscrupulous financial establishments in future.
However, the decision of the State Government is virtually negation of the earlier constant demand by opposition political parties, including BJP, Congress, left and various other sections, besides voluntary organisations, for either a CBI or SIT probe into the fraud committed by the fly-by-night operators and also to unearth the alleged complicity of the Chief Minister, Ministers, ruling party MlAs, police, bureaucrats and journalists.
Following allegation and lodging of FIRs against the fraudulent chit fund and credit cooperative societies, the State Government had already initiated an inquiry by the Crime Branch’s Economic Offence Wing (EOW) and Bhubaneswar Commissionerate of Police. While the EOW is probing the Saradha and Sea Shore money laundering activities, the
Commissionerate of Police is probing the wrong doings of the AT Group. Although the police raided offices of several fraudulent companies and arrested scores of people for irregularities and seized movable and immovable properties, computers, laptops and incriminating documents, the Government came under heavy fire from opposition questioning its integrity in taking up probe by different organisations for the same scam.
Accusing the BJD Government and particularly the Chief Minister of involvement in the scam, the BJP and Congress had alleged that the divergent probe was aimed at shielding the Government and influential persons involved in the crime.
In their reaction, the BJP and Congress had flayed the Chief Minister for ordering a judicial probe into the chit fund scam and said that the move is to linger the matter even after the 2014 elections as the size of the crime is enormous. They sought the Chief Minister to go for SIT probe under the judicial intervention to unearth the fact.