The minister informed the House that the state government would take stringent action against the chit fund companies found guilty in the irregularities
In last five years, 124 offenses had been registered against non-banking financial companies operating in Chhattisgarh in connection with cheating and irregularities.
"The police had registered offenses against 234 people of which five are the owners of the companies," Chhattisgarh's home minister Ramsevak Paikra said in the Chhattisgarh Legislative Assembly today.
About 64 companies had been operating in the state mainly in the chit fund business.
The minister informed that no chit fund company working in Chhattisgarh had been registered officially. "No chit fund company in Chhattisgarh had been registered under chit fund act," Paikra said, adding that the registration was only done by Registrar of companies at the Union government level. The state government had received complaint in this connection, the minister added.
Paikra said cheating and financial irregularities to the tune of Rs 22 crore had been reported against the non-banking financial companies in the state. The minister informed the House that the state government would take stringent action against the chit fund companies found guilty in the irregularities.
"The state assembly had passed a bill to enact a law for dealing with the non-banking financial and chit fund companies that had been sent to the President of India for consent," the minister said.
Once the President gives the consent, the law would come into force to deal with such companies, he added. At present, there was no specific law to deal with the companies duping people in the pretext of investment.
