Cuttack, Sept. 28: A PIL was filed in Orissa High Court last week challenging the state government’s decision to create a corpus fund of Rs 300 crore for distribution among victims of fraud deposit collection companies.

More than six lakh affidavits had been submitted to the Justice R.K. Patra Commission, which is probing into the scam in the state. The victims filed the affidavits before the panel with the hope of getting back their money.

The PIL, filed by Cuttack residents Shaikh Kamiluddin Ahemad, 50, and Bishnudutta Arya, 52, alleged that creation of the corpus fund for refund of money to the deceived depositors was “illegal”, “arbitrary” and “mis-utilisation of public money”.

“Unless the high court interferes by quashing the announcement made by the state government for creation of the corpus fund, the public at large will be seriously prejudiced,” stated the petition, filed through advocate Ramakanta Panda. It is expected to be taken up for hearing next week.

The petitioners further sought direction to the state government to “auction movable and immovable properties” of the fraud companies to distribute among their depositors in the “interest of justice”.

“The Odisha Interests of Depositors (in Financial Establishments) Act, 2011, which received presidential assent in August, 2013, has provisions for attachment of property of the concerned organisations for compensation of the depositors,” quoted the petition.

The petitioners alleged that the state government had neither taken “proper action” against the companies, nor made an assessment of the total amount of the invested money.

On July 9, the state government appointed Justice R.K. Patra, a retired high court judge, as the head of the commission and asked him to submit a report within three months.

It appointed the panel after the Opposition parties had slammed it for the spate of such cases involving thousands of investors.

In another development, the economic offence wing of the CID-crime branch has taken action against some 130 such companies, filed over 285 cases and arrested more than 300 persons for involvement in fraudulent deposit collection activities.