Patna DM seeks reports from police stations on chit fund cos

The Patna District Administration today took strong note of non-payment by some chit fund companies to their depositors and asked all police stations to furnish reports within a month about the companies operating in their areas.
"Around 15-20 complaints have been lodged by the small depositors with Public Grievance Redressal Authority saying that the (chit fund) companies in which they deposited their hard earned money are not making re-payment of their amount," Patna District Magistrate Sanjay Kumar Agarwal told reporters here.
"We have taken strong note of these complaints and asked all the police stations of Patna district to furnish their respective reports within a month about the Non-Banking Financial Companies and Chit Fund companies operating in their areas," Agarwal said adding that the magnitude of fraud, if any, could be known once reports from police stations are received in this regard.

The administration will take stern action against the companies which are illegally operating to take deposits from small investors, he said adding that daily-wagers, who deposit Rs 10-20 on a daly basis, are the common victims of such companies.
He asked such aggrieved depositors to make complaints either with Additional District Magistrate (Special) entrusted for the job or with Public Grievance Redressal Authority.
Referring to Bihar Protection of Interest of Depositors Act 2002 which was amended in 2013, the DM said that the state government has made stringent law to protect the interest of investors (depositors).
As per the law, NBFCs and chit fund companies have to take permission from the respective District Magistrates of the districts in which they intend to operate, he said.

The act empowers the DMs to carry out search, seizure and inquiry in case of any irregularities relating to these companies, sources said.