BHUBANESWAR: An intelligence alert from the Reserve Bank of India (RBI) has sent alarm bells ringing within the state Crime Branch. According to the input, several chit fund companies within the state had been accumulating cash from people the usage of the names of reputed companies like the Tata and Mahindra groups.
Following the alert, the Crime Branch sent a letter, a replica of which was once observed by means of TOI, to all district superintendents of police (SPs) to track down such sham financial entities.
"We have asked all the SPs to crack the whip on fraud firms that use names of reputed companies like the Tatas and Mahindras to hoodwink people. The Bhubaneswar branch of the RBI had received inputs from its headquarters about the imposters. Later the RBI here alerted us," further director general of police (Crime Branch) Santosh Upadhyay informed TOI.
"The RBI has told us that only banks and post offices are authorised to collect deposits," Upadhyay added. The Crime Branch letter cited quite a few complaints the RBI has received about illegal selection of deposits and mortgage offers by means of several fraud financial companies.
What has were given investigators scratching their heads is the impunity with which the chit funds corporations had been running regardless of the CBI probing atleast 44 corporations for alleged scams.
Police resources said at least 20 people of 15 chit fund companies had been arrested in numerous districts between 2015 and 2017. But this seems to have had little effect on the corporations, many of whom began operations against the end of 2014, round a 12 months after the rip-off surfaced.
"We have been sensitising people to stay away from companies that offer attractive interest rates or overnight returns on deposits. The RBI too spreads awareness. We suspect the sham companies are targetting gullible investors in rural areas," a police officer said.
In January and June 2015, the RBI had alerted the Crime Branch and finance department about illegal operations of a few chit fund companies whose actions are being probed by means of the CBI. The RBI had then said the firms endured to gather deposits from people regardless of the crackdown by means of the police and CBI.
Sources said a toll-free quantity (18003457103) launched by means of the Economic Offences Wing in January 2015 nonetheless receives complaints in relation to actions of chit fund corporations in numerous parts the state. In August 2016, the RBI had launched a portal (www.sachet.rbi.org.in) to facilitate submitting and tracking of complaints, but even so offering information about entities registered with a marketplace regulator or permitted to accept deposits.
Following the alert, the Crime Branch sent a letter, a replica of which was once observed by means of TOI, to all district superintendents of police (SPs) to track down such sham financial entities.
"We have asked all the SPs to crack the whip on fraud firms that use names of reputed companies like the Tatas and Mahindras to hoodwink people. The Bhubaneswar branch of the RBI had received inputs from its headquarters about the imposters. Later the RBI here alerted us," further director general of police (Crime Branch) Santosh Upadhyay informed TOI.
"The RBI has told us that only banks and post offices are authorised to collect deposits," Upadhyay added. The Crime Branch letter cited quite a few complaints the RBI has received about illegal selection of deposits and mortgage offers by means of several fraud financial companies.
What has were given investigators scratching their heads is the impunity with which the chit funds corporations had been running regardless of the CBI probing atleast 44 corporations for alleged scams.
Police resources said at least 20 people of 15 chit fund companies had been arrested in numerous districts between 2015 and 2017. But this seems to have had little effect on the corporations, many of whom began operations against the end of 2014, round a 12 months after the rip-off surfaced.
"We have been sensitising people to stay away from companies that offer attractive interest rates or overnight returns on deposits. The RBI too spreads awareness. We suspect the sham companies are targetting gullible investors in rural areas," a police officer said.
In January and June 2015, the RBI had alerted the Crime Branch and finance department about illegal operations of a few chit fund companies whose actions are being probed by means of the CBI. The RBI had then said the firms endured to gather deposits from people regardless of the crackdown by means of the police and CBI.
Sources said a toll-free quantity (18003457103) launched by means of the Economic Offences Wing in January 2015 nonetheless receives complaints in relation to actions of chit fund corporations in numerous parts the state. In August 2016, the RBI had launched a portal (www.sachet.rbi.org.in) to facilitate submitting and tracking of complaints, but even so offering information about entities registered with a marketplace regulator or permitted to accept deposits.
Chit fund firms using names of business houses to dupe people
![Chit fund firms using names of business houses to dupe people]()
Reviewed by Kailash
on
January 04, 2018
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