He was replying to supplementary queries on a calling attention notice moved yesterday by the NCP's Prakash Gajbhiye in the Legislative Council.
Raising a supplementary query, Gajbhiye said that thousands of people were being cheated due to this financial fraud.
Patil further said that cases registered in connection with these chain marketing companies had risen in the state.
While in 2016, 7,049 cases were filed, 2017 saw a 12 per cent rise with 7,918 cases filed against such firms, Patil said.
He informed that banks had been instructed not to extend credit to such companies.
"29 cases have been filed against chain marketing companies across the country and 31 people have been arrested. So far government has seized Rs 144 crores from bank accounts of these companies," Patil said.
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