Concerned over the multi-crore fraud committed by the Kolkata- based chit fund company Saradha Group, the State Government on Monday sought the expertise of the Security and Exchange of Board of India (SEBI) and the Reserve Bank of India (RBI) to check operation of fraudulent financial institutions and help investigate such cases.
“We would request the market regulators SEBI and RBI to send some expert officials on deputation to work with the State Government to help the Finance Department and the Economic Offence Wing of the Crime Branch to regulate the non-banking financial companies (NBFCs) and unauthorized incorporated bodies and check their unbridled fraudulent activities,” said Development Commissioner and in- charge of Finance Department Jugal Kishore Mohapatra.
Mohapatra was presiding over the second meeting of the Committee on Economic Offences at the State Secretariat which was attended by the representatives of SEBI, RBI, Crime Branch and Registrar of Companies and senior officials of the Finance Department.
After the meeting, Mohapatra said that in order to save the gullible people from the unscrupulous NBFCs and unauthorised chit funds, it was decided to undertake a senitisation programme throughout the State jointly by the Finance Department and the Economic Offence Wing of the Crime Branch.
He appealed the people not to invest money without ascertaining the credibility of the NBFCs and consequently become victim of their flattering words. Mohapatra said that in the changing situation with the growing incidents of economic offences, it was decided to strengthen the infrastructure of the Crime Branch with more skilled personnel in the wing so as to expedite the investigation on the complaints.
He also said that since the State Government had already ensured passing of the legislation in the State Assembly in December 2011 and sent to Union Government for Presidential assent in April 2012, it was also decided to take up the issue with the Central Government so that the Act gets President’s assent early. The proposed Act envisages protecting the interest of the depositors in the NBFCs and deposit acceptance activities of un-incorporated bodies.
To a question, Mohapatra said that the Economic Offence Wing of the Crime Branch was on the job to investigate the fraud committed by Saradha Chit Fund Group of Kolkota and Bhubaneswar- based Sea Shore Company. Initial reports suggested that the investors in Puri and Baleswar are the worst victims of the fraud.