Ranchi, Nov. 18: Jharkhand High Court today issued notices to Reserve Bank of India, CBI and SEBI on the operation of chit funds in the state.

A division bench of Chief Justice R. Banumathi and Justice D. N. Patel was hearing two PILs, seeking a CBI probe into the operation of several chit fund companies in the state.

The PILs, filed by Ajay Kumar and Bablu Kumar, sought the probe to check the genuineness of companies which delt with people’s money.

While Ajay sought a closure on the operation of chit fund companies in the entire state, Bablu has brought to light the operation of several companies active in Jadugora near Jamshedpur.

The bench directed the CBI, RBI and SEBI, along with the Centre and the state to file affidavits in the matter.

The petitioners stated that chit fund companies lure innocent people by offering them high rate of interest as returns for their investments in the company. After receiving heavy deposits from investors, the companies which usually operate from rented premises suddenly wind up.

People, were thus cheated of their hard earned money.

On September 4, the high court had instituted a suo motu PIL on investigations into the operation of chit fund companies in Deoghar district after it received a letter from Deoghar District Bar Association, seeking its intervention.