The Judicial Commission of Enquiry probing into the chit fund cases in the State on Wednesday issued notices to the State Government seeking details about all the non-banking financial companies (NBFCs) dealing with money laundering activities. The commission headed by former judge of Orissa High Court Justice MM Das also asked the Government to furnish details of any action, if taken, against any NBFC operating in violation of provisions of the RBI Act of 1934 and the Prize Chits and Money Circulation Scheme (Banning) Act of 1978.
The commission’s notice came while adjudicating a petition filed by an advocate of the High Court alleging that several NBFCs are operating their businesses in the State violating statutory provisions. The commission, set up by the Government in July 2013, is probing to identify individuals and entities indulged in illegal activities of money collection and to find out involvement of any influential persons in protecting and promoting such activities.