May 8, 2011 01:42 AM,
33 Chit Fund companies sealed at Gwalior – Madhya Pradesh(M.P). Administration and police in the city, with a combined team on Monday did raid over two dozen of corporate offices of Chit Fund Companies and seized a large number of records. The records related to the business of these companies have been asked to present in two days.
Administration and police in the city, with a joint team on Monday did raid over two dozen of corporate offices of Chit Fund Companies and seized a large number of records. The records related to the business of these companies have been asked to present in two days.
Collector Akash Tripathi and SP Makrand Deuskar in the afternoon finalized the action of raids on Chit Fund companies. Eight teams have been formed to investigate. Earlier, the SP and the Collector sent a letter to DIG about the police investigation on these Chit Fund companies and pointed to the police investigation was being lazy. During the first investigation the collector have already submitted report on 31 Chit Fund Companies (non-banking), this report was submitted to Superintendent of Police four months ago but only 11 cases have been presented in the court. Except for four companies, the process of giving notice is on the way.
The company operators and owners of these Chit Fund Companies are threatening investors. Such complaints have been reached last week to police and administration. Violence is also mentioned in the complaint when investors asked for money. The investigation teams found that during the raid, an official said that Skylodge Land Developers was accepting payments with an agreement. The record of Sai Prasad properties shows that it in four years they collected Rs.11 crores at Gwalior.
These are missing companies: Arbien Company Lalitpur Colony, MKD Developers Shinde camp, Ram Towers Shinde Camp, Royal Sun India Developers Bhagwan Colony Murar.
These are the instructions: the ongoing investigation against the companies should be completed immediately. A case should be registered under section IPC 420.
What the Act says: RBI Act of 1934 Section 45-1 (A) according to the Reserve Bank, without permission from RBI any non-banking company cannot accept funds from public. Madhya Pradesh Nispakesh Act. Protects the interest of the investors under companies Act, 2000. Additional rights have been given to SP, Additional Superintendent of Police to take action against Chit Fund Companies.
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