Deputy Speaker of State Assembly Rama Chandra Panda in a statement on Saturday urged both Central and State Governments to jointly create a corpus fund to compensate the thousands of investors who have been duped by various chit fund and money circulating agencies being lured through attractive offers, prizes, unsustainable dividends and high rate of interests.
Panda also blamed the regulators for their utter failure to regulate these companies in time and in warning the investors well in advance about the possible consequences.
Had the Government and the regulating agencies checked the authenticity and propriety of the rapidly growing hit fund and non-banking institutions and sensitised the citizens about the possible irreparable consequences of such investments through appropriate mechanisms, a plight of such magnitude, as seen today, would not have happened, he pointed out.
He said it is quite unfortunate that the victims numbering thousands are in serious mental trauma for having lost their hard-earned money. He suggested that the State Government make popular schemes to collect investments so as to end the fraudulent role of private chit funds.
Panda urged the investigative agencies to immediately act on the information disclosed by the AT Group chief about the bribes the company had to pay as protect money to some politicians and bureaucrats to run its clandestine operations and stop making selective leaks to prevent gossips so as to protect rule of law.