Odisha CM Orders Compensation for 5 Lakh More Chit Fund Victims

In a significant move to bring justice to victims of financial fraud, Odisha Chief Minister Mohan Charan Majhi on Wednesday directed officials to expedite compensation to an additional 5 lakh small depositors who were duped by various chit fund companies operating in the state.

According to an official release from the Chief Minister’s Office (CMO), the affected depositors are expected to receive their money within the next three to four months. This marks a substantial extension of the government’s ongoing efforts to address the long-pending grievances of people who lost their savings to fraudulent schemes.

“The Chief Minister has taken a strong stand in favour of the poor and middle-class investors who were misled by these companies,” the release stated. “The government is committed to ensuring that every genuine small investor gets justice.”

Over the past year, the new administration has already disbursed ₹47.07 crore to 1,26,137 small investors as part of its broader compensation initiative. The current directive is expected to significantly boost the confidence of the remaining victims, many of whom have been waiting for relief for nearly a decade.

The chit fund scam, which came to light in the early 2010s, involved multiple companies collecting deposits from lakhs of unsuspecting people across Odisha with false promises of high returns. Several firms collapsed, leaving investors in financial ruin and triggering widespread protests and legal battles.

Majhi’s government has reiterated its resolve to uphold accountability and transparency in financial matters and has asked the authorities to streamline verification and disbursal procedures to ensure timely and fair compensation.

The move has drawn praise from several quarters, including depositors’ associations, who hailed it as a long-awaited relief and a step toward restoring public trust.