Chit fund cos under Govt scanner

Source: The Hitavada      Date: 29 Nov 2017 11:25:00


Staff Reporter,

Govt to form cell at PHQ to monitor Chit Fund Companies

Home Minister Bhupendra Singh has said that a separate cell will be set up at Police Headquarters (PHQ) for monitoring of chit fund companies in MP. This special cell will be headed by police officer of Additional Director General’s rank.

Bhupendra Singh was replying to a call attention motion in the House on Tuesday. It was MLA Yashpal Singh Sisodia, who brought the call attention motion and attracted the attention of Government towards the cheating done by chit fund companies in Mandsaur and Neemuch districts. Home Minister Bhupendra Singh informed that in both Mandsaur and Neemuch districts, action has been taken against fourteen companies. He also added that to make people aware about the chit fund companies, as many as 1511 public communication and awareness camps have been organised at police stations and masses were also informed about the black listed companies. Then also people fell victim to such companies. Last year Government had written to Reserve Bank of India (RBI) in this regard, following which as many as 4,500 NBFCs have been closed in State.

He said it is Reserve Bank of India which gives licenses to companies and state government’s rights are very limited. State Government can’t interfere directly and it is after fraud that police comes to fore to take legal action. As it is RBI which fixes condition for companies hence it will be requested to make police verification mandatory to companies coming to Madhya Pradesh.

He also told that mostly, companies have their headquarters outside the State. He conceded that District Magistrates or Collectors should themselves collect information of such companies in their areas and once again letter will be written to them.

Yashpal Singh Sisodia was of the view that unemployed local agents fell into the trap of chit fund companies and along with the common people and farmers, they also get their money deposited in companies. When such companies arrives, no one ask their identities and several investing companies have cheated people. He demanded that police verification should be done of such companies.
Home Minister Bhupendra Singh announced to form a separate cell to look after chit fund companies on the suggestion given by Deputy Speaker Dr Rajendra Singh.