The state crime branch on Friday launched a massive crackdown on the companies involved in chit funds and similar financial activities across the state amid instances of large scale fraud.
"About 150 offices of such companies were raided by the state police simultaneously in 15 districts in a bid to verify authenticity of their businesses, approvals from Reserve Bank of India (RBI) and Securities & Exchange Board of India (SEBI), volume of investment as well as depositors," said B K Sharma, additional director general, crime branch.
The raids were conducted simultaneously in Balasore, Bargarh, Kendrapara, Jharsuguda, Bolangir, Ganjam, Kalahandi, Malkangiri, Rayagada, Sundergarh, Sambalpur districts where the crime branch seized various documents, money receipts and computers besides detaining some employees of the companies.
"Police generally raids the office of a particular NBFC and verifies its documents only after getting complaints against it. Now we have decided to verify their documents such as licence from the Reserve Bank of India (RBI) before the private finance company starts its business in a particular area," DGP said.
Mishra also appealed to people to inform the police whenever any NBFC opened office anywhere in the state and started deposit mobilisation schemes in the locality. "The firm will be under police scanner immediately," he assured
He said, police had taken action against several people of different chit fund firms after getting the complaints on their duping people.
"About 150 offices of such companies were raided by the state police simultaneously in 15 districts in a bid to verify authenticity of their businesses, approvals from Reserve Bank of India (RBI) and Securities & Exchange Board of India (SEBI), volume of investment as well as depositors," said B K Sharma, additional director general, crime branch.
The raids were conducted simultaneously in Balasore, Bargarh, Kendrapara, Jharsuguda, Bolangir, Ganjam, Kalahandi, Malkangiri, Rayagada, Sundergarh, Sambalpur districts where the crime branch seized various documents, money receipts and computers besides detaining some employees of the companies.
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"We have already instructed the district police offices in this regard and asked them to keep strict vigil on the activities of NBFCs and keep a tab on their illegal collection of deposits," director general of police (DGP), Odisha, Prakash Mishra told reporters in Berhampur.
"Police generally raids the office of a particular NBFC and verifies its documents only after getting complaints against it. Now we have decided to verify their documents such as licence from the Reserve Bank of India (RBI) before the private finance company starts its business in a particular area," DGP said.
Mishra also appealed to people to inform the police whenever any NBFC opened office anywhere in the state and started deposit mobilisation schemes in the locality. "The firm will be under police scanner immediately," he assured
He said, police had taken action against several people of different chit fund firms after getting the complaints on their duping people.