Over 100 detained in chit fund raids

The Odisha police have decided to continue raids on fraudulent chit fund companies, which are engaged in collecting money from people promising lucrative returns.

"We will not keep quiet after just one phase of raid and enforcement. The raids will continue on a regular basis and we will conduct it in different parts of the state. No company, big or small will be spared," said B K Sharma, additional director-general (DG), crime branch, Odisha police.

The state police have so far conducted raids at 200 places in about 15 districts and arrested over 100 officials working in different non banking finance companies (NBFCs). The raids were conducted at different branches of Saradha group, AT group, Sai Pragati, Ashore Group, Prayag, Rose Valley, Sahara India, Kolkata Weir Industries, Basil International, Samridh Jeevan, Green Ray, Swarna Bhumi, Abhas India, Royal Vision etc.

The crackdown, which started on Friday last week, was meant to verify the documents of NBFCs to ascertain whether they are operating with the approvals of Reserve Bank of India (RBI) and Securities & Exchange Board of India (SEBI) and to collect data about the volume of money they have collected from the depositors.

The raids were conducted simultaneously in Balasore, Bargarh, Kendrapara, Jharsuguda, Bolangir, Ganjam, Kalahandi, Malkangiri, Rayagada, Sundergarh, Sambalpur districts where the crime branch seized various documents, money receipts and computers besides detaining some employees of the companies.