Chit-Fund Companies Case: HC Directs Jharkhand Govt to Constitute Committee in 45 Days

The Jharkhand High Court has set a deadline of 45 days for the state government to establish a high-level committee responsible for facilitating the return of funds invested by individuals in various chit-fund companies.

During the proceedings of a petition filed by the Non-Banking Abhiraksha Suraksha Samiti, a division bench comprising Chief Justice Sanjaya Kumar Mishra and Justice Ananda Sen directed the government to release a notification confirming the establishment of the high-level committee within the stipulated time frame.

Furthermore, the bench specified that the high-level committee would be chaired by a former chief justice of the high court. Additional members of the committee would include the secretary of the Board of Revenue and a DIG ranked officer from the CBI, as outlined in the court’s order issued on Monday.

The primary mandate of the committee is to formulate a plan for the retrieval of funds for investors who fell victim to various chit-fund companies currently under investigation by the CBI. The court has scheduled a follow-up hearing on November 8 to review progress.

Previously, the court had rejected a proposal put forth by the state government, which aimed to establish a similar committee featuring an Inspector General of Police from the CID and six other members.

The court had been informed that both the CBI and the Enforcement Directorate had seized funds held by the chit fund companies, which were dispersed across different banks. The court asserted that these funds rightfully belong to investors who were deceived of their hard-earned money and should be expeditiously returned to them.