Post News Network
Bhubaneswar, Sept 15: The registrar of companies has issued show cause notices to 85 non-banking financial companies (NFBCs) operating in the state so far.
This was revealed by the registrar of companies AK Mohapatra at a meeting of state-level coordination committee on NBFCs held under the chairmanship of chief secretary Aditya Prasad Padhi here.
Mohapatra said that strict field inspection is being undertaken to locate such companies for initiating action against them.
He also apprised that action has been taken to verify registered office address and existence of around 270 companies. So far, 133 firms have been found to be non-existent while notices have been issued to 85 others.
The Securities and Exchange Board of India (SEBI) has passed orders against 21 entities for indulging in illegal fund mobilisation in the state, sources said.
Reviewing the actions by different agencies, the chief secretary directed the district police officials to keep strict vigil over suspicious and illegal collection of money from people by any company and inform the state headquarters.
A definite format for such reporting was devised and circulated to all SPs, sources added.
The meeting discussed about the standard operating procedure (SOP) for investigating cases under Orissa Protection of Investment of Depositors (OPID) Act and coordination among regulating as well as enforcing agencies.
Padhi further advised officials to intensify awareness building activities about emerging fraudulent companies.
The website Sachet launched by RBI was found quite useful as a link between people and regulatory authorities.
Padhi directed the registrar cooperative societies to strictly ban such activities and bring necessary amendments to the existing law.