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HC summons Bengal Home Secy over govt's 'non-cooperation' with panel on chit funds

IANS February 14, 2025 407 views

The Calcutta High Court has taken a stern stance against the West Bengal government's apparent lack of support for a compensation committee investigating chit fund victim losses. Home Secretary Nandini Chakraborty has been summoned to explain the state's non-cooperation, highlighting serious concerns about infrastructure and staffing for the committee. The court emphasized the government's crucial role in assisting victims who lost significant funds in multi-level marketing schemes. This development underscores the ongoing challenges in addressing financial fraud and protecting investors in the state.

"It is the prime responsibility of the state government to extend full cooperation" - Calcutta High Court
Kolkata, Feb 13: The Calcutta High Court on Thursday summoned West Bengal Home Secretary Nandini Chakraborty to be present in the court next week and clarify the state government's points in a case related to the state's alleged non-cooperation with a committee formed to ensure compensation for the victims losing money after investing in the deposit schemes of chit fund entities in the state.

Key Points

1

HC demands clarity on state's non-cooperation with chit fund victim panel

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Nandini Chakraborty to appear on February 20

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Committee facing infrastructure and staffing challenges

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Multiple Ponzi schemes impacted investors' funds

Chakraborty will have to appear at the division bench of Justice Joymalya Bagchi and Justice Gaurang Kanth on February 20 and explain the state government's observation on the accusations in the matter.

In wake of the mushrooming of chit funds or Ponzi entities in the state in the last decade, a committee, headed by a retired justice, was formed to ensure proper compensation for the victims losing crores of money by depositing in the multi-level-marketing schemes of such shady entities.

However, a case was filed of the Calcutta High Court accusing the state government of not extending cooperation to the said committee, especially as to making provisions for necessary infrastructure and filling up the post there.

The HC bench took the complaints quite seriously and observed that it was unfortunate that the vacant post in the committee had not been filled up and even the terms of officers appointed in the committee and whose tenures there had expired had not been extended.

The complaint is also there the state government is yet to give the clearance for fixing and paying the remuneration of the chairman of the committee.

The Calcutta High Court observed that such non-cooperation on part of the state government was especially unfortunate when the court itself took initiative of forming the committee only after getting assurance of full cooperation from the state government.

The court also observed that it is the prime responsibility of the state government to extend full cooperation to said committee in the matter for proper discharge of their functioning.

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