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Cases of Fraud and Cheating by the Chit Fund Companies

Wednesday, August 21, 2013 Posted by Unknown No comments
‘Chit Fund’ companies indulging in cheating of investors are to be proceeded against under the Chit Funds Act 1982 and the Prize Chits & Money Circulation Schemes (Banning) Act, 1978 under which investigations are to be carried out by the State Police authorities. Giving this information in written reply to a question in the Lok Sabha, Shri Sachin Pilot, Minister of Corporate Affairs, said that violations of the provisions of the Companies Act, 1956 by such companies are to be investigated by agencies under the Ministry of Corporate Affairs including the Serious Fraud Investigation Office (SFIO). Thus, while cases of fraud and cheating by the Chit Fund Companies are under investigation by Police Authorities and the Securities and Exchange Board of India (SEBI), in respect of 63 such companies, SFIO is also investigating matters relating primarily to violations of Companies Act, 1956.

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