As many as 107 cases for allegedly running ponzi schemes have been referred to the Serious Fraud Investigation Office (SFIO) for investigation in over two years, Parliament was informed today.
"The SFIO has informed that during the last two years and current year, 107 ponzi cases in guise of multi-level marketing/chit fund companies were referred to the SFIO for investigation," Minister of State for Finance Jayant Sinha said in a written reply to the Rajya Sabha.
Ponzi or MLM schemes are fraudulent investment operations, which lure investors with promise of high returns.
In addition, Directorate of Enforcement (ED) has registered 19 ponzi cases in the last two years.
Saradha group firms and Rose valley Group companies also feature in this list of 107 firms.
Surprisingly, 96 firms are West Bengal-based.
Sinha said that various measures have been taken to ensure effective information sharing amongst the participants at regular intervals to quickly identify and take effective action against entities indulging in authorises and suspect business involving fund mobilisation from gullible public.
