Cases of Fraud and Cheating by the Chit Fund Companies



INDIACSR News Network

NEW DELHI: ‘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.

Please follow and like us:



Previous articleInvestigations by the Serious Fraud Investigation Office
Next articleCorporate India and CSR by Anirudha Dutta
India CSR Network
India CSR Network is India's biggest and most trusted news portal in the domain of CSR & Sustainability. India CSR welcomes stories, statements, updates, reports on issues that interest you. Feedback, comments will make it more purposeful and resourceful. It is designed and maintained by India CSR Group. Contents are non-fiction. Though all efforts have been made to verify the accuracy, the same should not be construed as a statement of law or used for any legal purposes. In case of any ambiguity or doubts, readers are advised to verify with the source(s). Statement, articles, views and contributions can be sent to