Ranchi, Sept. 5: Jharkhand High Court today pulled up the state government for allowing chit fund companies to flourish after it failed to submit an affidavit, specifying steps that have been taken to crack down on such shady firms.
The court also directed DGP Rajiv Kumar and chief secretary R.S. Sharma to file a report on actions taken against such companies at the earliest. The case will be taken up again on September 9.
Yesterday, hearing a PIL against chit fund companies, a division bench of acting Chief Justice D.N. Patel and Justice S. Chandrashekhar sought a reply from the state.
Sharply reacting to apathy, the bench today said government officials had become lazy and callous. “Even after a court order, the state has not filed any affidavit. It seems that the government is allowing time to chit fund companies to transfer the money of common people to their private accounts,” the bench observed.
It directed officials to immediately seal bank accounts of such companies.
The bench sought to know from the DGP whether any action had been taken. He was asked to inform how many cases had been filed, whether any arrests had been made and if anyone was absconding.
The court asked Sharma whether SEBI had passed any orders regarding functioning of chit fund companies, which had amassed over Rs 1,000 crore in the state.
The PIL was initiated on the basis of a letter sent by the Deoghar District Bar Association to the high court in February this year.
According to the letter, as many as 27 such firms operate in Deoghar district alone. The advocates’ body had lodged complains with the Deoghar deputy commissioner and sub-division officer, too, in this regard.
The letter further states that these companies are very active. Their employees mingle with common people and convince them to invest money in such firms, who promise sure dividends and high rates of interest to lure investors.