Bhubaneswar: An advertisement published today in various newspapers by the Odisha Government’s Finance Department states that original deposit receipts are not mandatory for the refund of money to small depositors whose claims have been recommended by the Hon’ble Commission of Inquiry. However, the Depositors’ only Forum “Arthika Sansthamananka dwara Kshatigrastanka Milita Mancha has alleged that the entire refund process has turned into a farce and continues to deprive many genuine victims of chit fund fraud.
It may be recalled that the Commission of Inquiry, headed by Justice Madan Mohan Das, opened only about one lakh envelopes and examined more than seven lakh affidavits received therein. Based on this scrutiny, the Commission recommended the refund of deposits to 4.97 lakh small depositors through seven interim reports submitted to the State Finance Department.
Acting on these recommendations, several Tahasil offices verified original deposit certificates and in some cases, refunded amounts below ₹10,000 to depositors. In some other Tahasils, although original deposit certificates were verified, indemnity bonds were obtained, and “Rejected” seals were stamped on the original certificates, the depositors have still not received any refund.
It is noteworthy that during the first phase, from 2nd August to 31st October, 2013, Justice R.K. Patra invited affidavits regarding chit fund fraud cases. Although depositors were not specifically directed to submit affidavits, the “Arthika Sansthamananka dwara Kshatigrastanka Milita Macha” mobilized affected depositors and facilitated the submission of affidavits. Due to postal difficulties, and based on the Commission’s verbal advice, multiple affidavits were enclosed in single envelopes instead of sending them individually. During this phase, more than 11 lakh envelopes and parcel packets were submitted to the Commission.
In 2015, Justice R.K. Patra clarified to the media that identifying individual depositors was not part of the Commission’s Terms of Reference. Unfortunately, within a week of making that statement, he passed away unexpectedly. Subsequently, Justice Madan Mohan Das was appointed to the Commission. After his appointment, the Government amended the Terms of Reference to include the identification of depositors.
Following this amendment, the Commission again invited affidavits from depositors between 1st November, 2018, and 31st January, 2019. During this period, a 22-day postal strike and a four-month lawyers’ strike severely affected the process. As a result, organizers submitted affidavits in bulk, with 50 to 100 affidavits enclosed in each envelope or parcel. More than eight lakh envelopes were received in this second phase. Thus, the Commission received over 20 lakh envelopes and parcels across both phases.
Meanwhile, the Finance Department issued a resolution defining “small depositors” as those who had invested less than ₹10,000 in one or more companies combined. It directed that such depositors be given priority in the refund process. Based on the scrutiny of over seven lakh affidavits obtained from a limited number of opened envelopes, the Commission recommended refunds for 4.97 lakh small depositors.
The Finance Department initiated action on these recommendations. However, neither the depositors nor the public have been informed about whose names were included in the Commission’s recommended list. Had the Government published Tahasil-wise lists of recommended depositors on notice boards, affected depositors could have easily verified their eligibility. Unfortunately, this has not been done.
Between 2018 and 2024, during the previous government’s tenure, more than half of these 4.97 lakh recommended depositors reportedly received refunds. Furthermore, under the present Government led by Chief Minister Mohan Charan Majhi, around ₹46 crore has also been refunded through the same mechanism. The core problem, however, remains the absence of any public disclosure of the Commission’s recommended list of beneficiaries.
Even though the latest advertisement mentions a website, many affected depositors are elderly pensioners, daily wage earners, and people with limited access to digital resources. It is unrealistic to expect them to obtain information through online platforms. Therefore, the Forum demands that the Commission’s recommended lists be displayed on notice boards in every Tahasil office. This would enable eligible depositors to verify their names and claim their refunds. Failure to do so will deprive many legitimate beneficiaries of their rightful dues.
The Forum further pointed out that the BJP, during the election campaign, had promised to identify and refund all depositors—both small and large—directly. However, despite nearly two years in office, with the anniversary of the Government’s tenure approaching on 12th June, 2026, this promise has yet to be fulfilled in practice.
According to the ASKMM, the Government can identify all depositors through the Tahasil administration and recover their dues from the properties and assets of the fraudulent companies concerned. However, it alleges that the Government under Chief Minister Mohan Charan Majhi has shown little interest in pursuing such a comprehensive solution. The ASKMM warned that repeated assurances without meaningful action are testing the patience of cheated depositors. It cautioned that if affected depositors begin to organize and protest against the continuing delays, the Government may have to face serious consequences.
