Chit fund company closes down, officials absconding

A chit fund company which had collected an estimated Rs four crore from low income investors in Kendrapara and Jagatsinghpur district has closed down and its officials are absconding, police said today.
A case of fraud under section 420 Indian Penal Code has been registered against the chit fund company while the Kendrapara district police have apprised the crime branch wing of state police of the scam.
The poor depositors were in for rude jolt after they found offices of 'BP finance' shut down. The company officials remained incommunicado as their mobile phones were switched off. Realising that they have been taken for a ride, the duped investors knocked at the doors of local police and civil administration.

"The investors who have been cheated by the chit fund company have petitioned the district administration. The deceived people are mostly from Rahama area under Tirtol police station. We have referred the matter to local police for investigation," said Jagatsinghpur District Collector Satya Kumar Mallick.
Patkura police in adjoining Kendrapara district has also registered criminal case against the company after a group of investors lodged a complaint.
The officials and agents of the chit fund company are absconding. As complaints of similar nature are being probed by crime branch of the state police, the investigating agency has been informed about the incident here, said Kendrapara Sub Divisional Police Officer (SDPO) Nrusingha Charan Swain.

Majority of duped depositors were lured into investment in the chit fund as they were assured of abnormally high return.
They were told of doubling up of sum in a two-year time. The investors mostly included small and marginal farmers, cattle farmers, daily labourers and petty businessmen, the SDPO said.