High Court to be requested to spare the services of a judge for the purposeThe panel to suggest measures to safeguard the interest of genuine investors

The State government on Thursday decided to appoint a judicial commission to inquire into the alleged frauds committed by chit fund companies.

According to a release issued by the Chief Minister's Office, the High Court will be requested to spare the services of a sitting judge for the purpose. The commission will be asked to submit its report in three months.

The commission will “probe and bring out the involvement of influential persons, including politicians, bureaucrats, and other sections of the society, if any, in protecting or promoting fraudulent chit fund companies.”

The commission will also suggest measures to safeguard the interests of genuine investors affected by the recent incidents relating to the chit fund frauds. The commission will also suggest safeguards for future to ensure financial security for the genuine investors and prevention of such problems in future, according to the release.

Thousands of investors have been staging protests against the different chit fund companies and urging the State government to take measures to ensure refund of their money.

CBI probe sought

Several opposition parties, including the main opposition Congress, had demanded a CBI probe into the chit fund scam in which lakhs of genuine investors were cheated by different chit fund companies. A fair probe by an independent inquiry could help identify the influential people involved in the scam, said the opposition parties.

Senior Congress leader and former Law Minister Narasingha Mishra termed the State government’s decision as an eyewash.

The government had just made an attempt to buy time as they know that a sitting judge of the High Court cannot be spared for any commission of inquiry as per the Supreme Court judgment, he said.