Follow Us:
Sunday, July 15, 2018

Chit fund scam: Orissa govt forms panel to fix compensation

The compensation would not exceed the principal amount of the depositor.

Written by Debabrata Mohanty | Bhubaneswar | Published: November 3, 2014 2:50:35 am

More than a year after it passed an Act to protect the interests of small depositors who were duped of their savings by chit fund firms, Orissa government has announced a 5-member committee headed by additional chief secretary of finance to determine the quantum of compensation to be doled out to the victims.

With the CBI probe into the chit fund scam landing at its doorstep after the arrest of BJD MLA Pravat Tripathy two days ago, the government was eager to return money to the angry depositors, sources said.

Apart from the finance secretary, additional chief secretary of revenue and disaster management department and the home secretary would be part of the committee.

After the scam came to light in 2011, the Naveen Patnaik government framed the Orissa Protection of Interest of Depositors Act, that was made into a law in August last year. The government also announced a Rs 300-crore corpus fund called “Fund for protection of interest of depositors” to compensate the depositors.

Though the detailed procedure is yet to be announced, officials said the compensation would be disbursed after verifying each claim. The compensation would not exceed the principal amount of the depositor.

For all the latest India News, download Indian Express App