Bhubaneswar: The Odisha government has refunded a total of Rs 49,67,68,568 to depositors affected by chit fund scams over the past 14 months, Chief Minister Mohan Charan Majhi informed the state assembly on Monday.
In a written response to a question by Bhograi MLA Goutam Buddha Das, the Chief Minister stated that 1,33,755 depositors had received refunds. These individuals were victims of fraudulent investment schemes run by companies including the Rose Valley Group of Companies, Golden Land Developers Group of Companies, and Hi-Tech Estates Group of Companies. The refunds were based on recommendations made in the interim report submitted by the Commission of Inquiry.
Majhi noted that the Commission recommended refunds for 4,72,651 small depositors, of whom 96,801 have so far been compensated with Rs 46 crore from the government’s specially constituted corpus fund. The Rs 300 crore fund was set up by the state to ensure relief for small investors duped by illegal financial institutions.
According to estimates from the State Economic Offences Wing (EOW), around 24,75,782 affected investors had deposited approximately Rs 6,860.14 crore in various unauthorised financial establishments operating across Odisha.
Under the Odisha Protection of Interests of Depositors (in Financial Establishments) Act, 2011 (OPID Act), courts are authorised to direct the Finance Department to proceed with recovery and disbursal of funds. Once legal proceedings are completed, confiscated assets and frozen bank deposits of fraudulent institutions are auctioned, and proceeds are returned to legitimate investors.
So far, Rs 123 crore has been refunded to 3,16,063 depositors under the provisions of the OPID Act. The Chief Minister assured the House that the government is taking all necessary steps to expedite the refund process.
