Telangana CID cautions people against 31 NBFCs

Move follows series of frauds on small depositors being discivered in Andhra Pradesh

The Telangana police on Tuesday cautioned people against entering into any kind of financial transactions with non-banking financial companies (NBFCs) that have been barred from doing business by the Reserve Bank of India (RBI).

The additional director general of police of Crime Investigation Department (CID) has issued a list of 31 such companies, whose certificate of registration had been cancelled by the RBI, in a bid to alert the public.

The move comes close on the heels of a series of financial frauds that had come to light in Andhra Pradesh involving the money of hundreds of small depositors. The AP police had attached the properties of two companies, including Gold Stone group, which had allegedly duped the depositors by not paying the money on completion of the maturity period.

Some of the names of the NBFCs listed out by the Telangana CID figured on the list of 2,094 companies whose certification of registration was cancelled as on September, 2014. The list, which also includes a set of companies based in AP, is available on the RBI website.

Meanwhile, the list of 31 companies released by the Telangana CID police include the names two firms with the office address similar to that of a reputed media house in the city.