PIL filed in HC Challenging corpus fund for Chit Fund Victims

Cuttack, Dec 18: A PIL has been filed in the Orissa High Court against the corpus fund formed by the state government to compensate the victims of the chit fund scam.

The PIL was filed by Utkal Bharat President Kharavela Swain on Wednesday challenging the state government's recent notification to create a corpus fund of Rs 300 crore to refund the money to the duped chit fund depositors in the state.

He termed the government's move as arbitrary and illegal and urged the court to quash the notification. He said that the PIL was in fact filed in September, 2013 soon after the state government announced its intention to form such a fund. But due to several reasons including the elections, he was not able to pursue the matter.

Later, his lawyer advised him to file a fresh petition against government notification.

Stating the corpus fund as "misutilisation" of public money, the PIL urged the court to direct the state government to recover the amount from the chit fund firms who have duped thousands of depositors in the state by auctioning and selling the movable and immovable properties and assets seized from the companies.