Special Task Force in SFIO to probe chit fund companies

Bhubaneswar/New Delhi: The Union Ministry of Corporate Affairs has decided to set up a Special Task Force in the Serious Fraud Investigations Office (SFIO) to investigate the affairs of certain Chit Fund companies.

Accordingly, all investigations into such companies are being entrusted to SFIO with immediate effect. The Task Force will also co-ordinate with other law enforcement agencies and regulators wherever required.

In the wake of a West Bengal-based chit fund company going bust, the Ministry of Corporate Affairs has taken note of the misuse by certain “Chit Fund Companies” who have raised huge sums of money from the public at large. The State Governments are the appropriate authorities for regulation of such Chit Fund companies/Schemes under the Chit Funds Act 1982.

However, in view of the larger public interest involved in these cases, and concerns regarding misuse/laundering by such companies of the ill gotten wealth, and the possibility that the promoters of these companies may strip these companies, it has been decided by the Ministry of Corporate Affairs to set up a Special Task Force in the SFIO to investigate the affairs of such companies.