Chit funds: Maha govt to auction property of defaulters

Maharashtra government has decided to auction property of those who have cheated investors of crores of rupees through chit funds and ponzi schemes, Home Minister R R Patil said here today.
"Police have seized property worth Rs 891 crore in connection with defrauding seven lakh investors in Mumbai to the tune of Rs 1,175 crore," Patil said, at a meeting of senior officials, held at Mantralaya to review action against the defaulters.
"Properties of the concerned would be auctioned and investors' money paid back, as per provisions in the law," Patil said.
Maharashtra was the first state to enact a legislation aimed at protecting the interests of investors, the minister said.

Meanwhile, BJP leader Kirit Somaiya, who had alleged that the state government had turned a blind eye to chit-fund scams amounting to hundreds of crores involving over 100 Ponzi schemes, today met Patil.
During the meeting, Somaiya expressed satisfaction over the police action in the multi-crore Speak Asia online investment scam, a spokesperson for the Home Minister said.
Somaiya had recently claimed that more than 10 lakh small investors have been hit by ponzi schemes and had accused officials of the Economic Offences Wing of deliberately dragging their feet in their investigations into these companies, choosing to arrive at a "settlement" with their owners.