Chhattisgarh plans tough action against fraud non-banking financial institutions

Chief Minister Raman Singh said that the special cell constituted at the district level to check and control the alleged fake activities of non-banking finance institutions and chit-fund companies would be armed with more powers.

During Question Hour on Wednesday, Congress Legislator Motilal Dewangan raised the issue and said fake chit-fund companies were looting and cheating the people of the state.

He asked the Home Minister about the number of first information reports (FIRs) lodged against the chit-fund companies for cheating the people of the state during the period 2009 to 2013.

The Congress member also asked about the action taken against the fraud institutions. He also enquired about the number of people who were cheated by the chit-fund companies and the amount lost by the common investors.

He also asked how many chit-fund companies are operating in the state and how many of them possess genuine operating licenses from competent authority.

In the written answer, Home Minister Ramsewak Paikra said in all 96 cases between 2009 and 2013 were registered.

The minister said 3717 people had been cheated for an estimated amount of Rs 124.07 crore. "The 174 accused in the cases have been arrested and in 73 cases challan has been put up in the court of law," Paikra said, adding that in 16 cases, investigations were still going on.

The leader of opposition, T S Singhdeo asked about the action taken by the state government against the chit-fund companies. Senior Congress legislator Bhupesh Baghel sought to know of the arrested 174 persons, how many had been Directors.

He alleged that no action has been taken against big shots involved in these cases.