Chit fund companies under scanner in Chhattisgarh

Chhattisgarh government has issued an alert to the district and police administration across the state to give a close watch on the activities of chit fund companies.

The directive came after a delegation of people who lost their hard earned money to a chit fund company approached Chief Minister Raman Singh and pleaded for action.

The complainants said they had deposited the money HBN Dairies and Allied Limited that had reportedly closed down its office.

In the complaint to the state government, the investors said the staff of the chit fund company had fled the city. Based on the complaint, the city police had lodged a First Information Report (FIR) against HBN Dairies and Allied Limited. The company could not be contacted for its version on the issue.The Chief Minister assured the delegation that the officials and staffer of the company would be arrested as the state government would take stringent action for duping people. He said the chit funds companies engaged in such activities and operating without proper financial health would not be allowed to mushroom in Chhattisgarh.

Singh directed the district administration and police across the state to keep a close watch on the chit funds companies operation in the respective district. The incident came to the fore after a week of country's central bank asking the state government to remain alert on the non banking financial companies (NBFCs) active in the state.

At the coordination committee meeting of the Reserve Bank of India (RBI) held here, the bank officials pointed out to the state officials about the issue.

The investment schemes floated by the real estate or plantation companies also came up for discussion.

The RBI officials stressed for awareness among the investors to check the financial health of such companies before investing.