Massive Fraud by Chit Fund firms in India

Presently, millions of people across India are filling being cheated by numbers of chit fund firms which lured them to deposit their hard earned money with them for getting more returns. These firms collected thousands of crores of Rupees from ordinary people with assurance of providing maximum returns. These companies presented themselves as real estate developers, dairy owners, tree growers etc. However, police upon investigation found that they do not have assets in match with money collected by them.

Most of chit fund companies claimed properties and projects worth of crores of rupees across India; however, in reality they do not have much presence in India and their assets are very limited. Some chit fund companies claimed that they will provide flats to people, some claimed that they will give cattle in return, some claimed for giving higher money returns. However, most of companies defaulted on their claims and many customers of these companies did not receive what they were assured while investing with these chit fund firms.

This whole racket of chit fund firms came in to light when Madhya Pradesh police registered cases against three dozen such companies including PACL ltd. Now police in other states do have started investigation against such firms and they are sealing offices of such companies. Investors are gathering in the offices of such companies in large numbers to get back their money; however, most of companies are just trying to persuade their customers to have trust in company.

At present, it is very hard for customers to remain with these firms because their frauds have come to light; therefore, people want their money back. Most of chit funds companies do not have money or assets to pay back their customers; therefore, they are defaulting on their claims and returns. Police has sealed offices and properties associate with these companies; however, worth of such assets is very less as compared to total money of depositors.

It is very important for government of India to thoroughly investigate such frauds and make hard laws to avoid such frauds in future; otherwise ordinary people of India will get cheated by such firms again and again.
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