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The Andhra Pradesh Crime Investigation Department (CID) on Tuesday served notices to Cherukuri Ramoji Rao, the Chairman of <keyword id="16966193" type="General" weightage="80" keywordseo="margadarsi-chit-fund-private-limited" source="Orion">Margadarsi Chit Fund Private Limited</keyword> and his daughter-in-law and Managing Director Sailaja Cherukuri in connection with Chit fund scam. As per the notice, the said persons have been asked to be present at their residence/office on March 29 or March 31 or April 3 or April 6 and cooperate with the investigation. Last November, Andhra Pradesh's Registration and Stamps Department said that there have been malpractices in the functioning of chit fund companies in the state and show cause notice would be issued to those who have violated the rules. V Ramakrishna, Inspector General (Registration and Stamps Department) had said forensic auditing will be carried out in Margadarshi chit fund companies at a press conference. The official had said that the <keyword id="16966192" type="General" weightage="80" keywordseo="stamps-and-registrations-regulatory-authority" source="Orion">Stamps and Registrations Regulatory Authority</keyword> will be the nodal agency for chit-fund institutions and carry out regular inspections. He had said the department conducted inspections at 12 chit fund companies on October 21, five organisations were inspected on October 31 and 18 units were inspected on November 15. He had said a total of 35 units have been inspected. Ramakrishna had said that irregularities included using money borrowed through chit fund for "other purposes" "We noticed that some are doing chit-fund business without regi<keyword id="52208" type="General" weightage="80" keywordseo="str" source="Orion">str</keyword>ation. We have registered a case against STR chits in Bhimavaram and those who are doing chit fund business without permission. Some chit-fund companies are doing other business. We will take action against them. Money borrowed for chit should not be used for other purposes," he had said. He had said inspections were carried out on November 15 at 15 units of <keyword id="617366" type="General" weightage="80" keywordseo="margadarsi-chit-fund" source="Orion">Margadarsi Chit Fund</keyword> company and said there was some difficulty in inspections. "Show cause notices will be issued to companies that have violated the rules, including the guidelines of the company. We will take further action after getting the reply to the show cause notices," he had said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/indias-covid-cases-show-a-slight-drop-with-only-1539-new-infections-and-four-deaths-in-the-last-24-hours/articleshow/99057573.cms">India's Covid cases show a slight drop, with only 1,539 new infections and four deaths in the last 24 hours</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/sc-dismisses-customs-plea-claiming-overvaluation-in-import-of-capital-goods-by-adani/articleshow/99057735.cms">SC dismisses custom's plea claiming overvaluation in import of capital goods by Adani</a>

Andhra Chit fund scam: CID issues notice to Margadarsi chairman Ramoji Rao & others

The <a href="http://www.businessinsider.in/searchresult.cms?query=CBI">CBI</a> today conducted searches at over 50 locations across Maharashtra and Odisha to crack down on <a href="http://www.businessinsider.in/searchresult.cms?query=chit+fund">chit fund</a> fraud. 
 
The searches were done basis two cases registered against a Pune-based <a href="http://www.businessinsider.in/searchresult.cms?query=private+group">private group</a> which allegedly collected money from people illegally. The searches were done at 58 locations including Pune, Nasik, Aurgangabad and Solapur. 
 
The official and residential premises of the firm's promoters were also searched. 
 
Image credit: Indiatimes

CBI conducts raids in Maharashtra and Odisha over Chit
fund scam

The central bureau of investigation (<keyword id="6354572" type="ORGANIZATION" weightage="100" keywordseo="CBI">CBI</keyword>) raided the premises of another chit fund company, <keyword id="2459149" type="UNKNOWN" weightage="100" keywordseo="Midas-Touch-Assets-and-Securities-Limited">Midas Touch Assets and Securities Limited</keyword>. The CBI raided Midas Touch's head office in Bhubaneswar and branch offices at other places in the state. 
 
Last week, the investigating agency had raided the offices of Nava Diganta Capital Services Limited. The company is accused of duping hundreds of investors in Odisha. 
 
Midas Touch started its operations in 2009 and collected money from investors in Angul, Puri, Bhubaneswar, Dhenkanal and Baripada. 
 
CBI sleuths could not lay their hands on the company's managing director Soubhagya Kumar Samal, who is on the run. His parental house in Jajpur was also raided. 
 
“The flat was found locked with several bank notices pasted on the door. Samal had failed to repay the loan availed from a bank to purchase it. Raids are being conducted to know his whereabouts," said a CBI officer. 
 
"Samal fled without paying the house rent of Rs 3 lakh. He had taken the house on rent in 2009. A few days ago, I learnt that he had fooled investors by claiming that the building was his," said Piyush Prasad Prusty, the owner.

CBI Raids Another Company In Chit Fund Scam

Counted as it is among the world’s fastest growing economies, an unfathomable amount of money flows in and out of the Indian economic system. But there are cracks in said system, and ever so often, a fraudulent mastermind uses them to slip some cash out for their advantage. From <keyword id="19964851" type="General" weightage="20" keywordseo="ponzi" source="keywords">Ponzi</keyword> schemes to bank frauds, the Indian government and investors have fallen victim to many financial scandals — some of which were so sordid that they can be recounted like they happened yesterday. Here’s a rundown of the most infamous scams in Indian financial history: <h2><keyword id="20713434" type="General" weightage="20" keywordseo="harshad-mehta" source="keywords">Harshad Mehta</keyword> Scam (1992) – ₹4,000 Crore </h2>Perhaps the most iconic of all Indian financial scams, Harshad Mehta was known as the "Big Bull" of the stock market. He manipulated stock prices using illegal loopholes in the banking system. By obtaining unsecured loans from banks and investing them in the stock market, Mehta artificially inflated stock prices. His bubble burst when banks demanded their money back, revealing the massive fraud. This scandal led to a major reform in India's financial markets. Mehta died in jail before full legal accountability was reached, but the scam caused a significant loss to investors and led to tighter regulation in the Indian stock market. <h2><keyword id="23122396" type="General" weightage="20" keywordseo="satyam-scam" source="keywords">Satyam Scam</keyword> (2009) – ₹14,000 Crore </h2>Dubbed as India’s Enron, the Satyam scandal involved its founder, <keyword id="23122397" type="General" weightage="20" keywordseo="ramalinga-raju" source="keywords">Ramalinga Raju</keyword>, admitting to falsifying the company's accounts to the tune of ₹14,000 crore. Satyam Computer Services, once considered a blue-chip company, was found guilty of inflating profits and revenues. Raju admitted to the scam after a failed attempt to buy two Maytas firms owned by his family. This case brought corporate governance issues in India to the forefront. Raju was convicted, but the legal processes have allowed him temporary freedom through bail. But this incident called for improved transparency and stricter corporate governance norms. <h2>Punjab National Bank Scam (2018) – ₹13,700 Crore </h2>Diamond merchant Nirav Modi and his uncle Mehul Choksi orchestrated one of the largest frauds in Indian banking history by obtaining fraudulent Letters of Undertaking (LoUs) from Punjab National Bank (PNB). These LoUs allowed them to obtain loans from foreign branches of Indian banks without providing any collateral. The scam involved over ₹13,700 crore, and Modi fled the country, causing significant reputational damage to India’s banking sector. Nirav Modi’s extradition is still pending, and Mehul Choksi remains out of India’s legal jurisdiction. The scam, however, resulted in strengthened banking regulations regarding LoUs and SWIFT transactions. <h2><keyword id="23122399" type="General" weightage="20" keywordseo="vijay-mallya-scam" source="keywords">Vijay Mallya Scam</keyword> (2016) – ₹9,000 Crore</h2>The "King of Good Times" was living large while his airline, Kingfisher, was drowning in debt. Vijay Mallya allegedly defaulted on loans amounting to ₹9,000 crore from various banks. He fled to the UK in 2016, leaving creditors, employees, and stakeholders in financial distress. His lavish lifestyle amidst the collapse of his airline made this scandal a high-profile case. Mallya’s extradition process is ongoing, but he remains out of reach of Indian authorities. The main impact was enhanced scrutiny of loan defaults and triggered legal reforms on extradition. <h2>Saradha Chit Fund Scam (2013) – ₹2,500 Crore </h2>The Saradha Group, operating a ponzi scheme disguised as a chit fund, promised unrealistically high returns to its investors, mostly in West Bengal and Odisha. The scam collapsed, leaving over 1.7 million people, many of whom were low-income investors, without their life savings. Politicians and celebrities were also implicated in the case. While Sudipta Sen is behind bars, not all the accomplices have been held accountable. But this Ponzi scheme resulted in reform of chit funds and greater regulatory oversight on such investment schemes. <div type="Article" hostid="261" msid="112337071" title="Noida woman invests in stock market via an app, loses over Rs 69 lakh as it turns out to be a scam" mstype="2" mssubtype="0"></div> <h2><keyword id="6560832" type="General" weightage="20" keywordseo="2g-spectrum-scam" source="Orion">2G Spectrum Scam</keyword> (2008) – ₹1,76,000 Crore </h2>The 2G spectrum allocation scandal involved the underpricing of telecom licences to select companies in exchange for bribes. Telecom minister A. Raja was at the centre of this controversy, which allegedly caused a loss of ₹1.76 lakh crore to the exchequer. The case was seen as a massive blow to public trust in India’s telecom sector and led to significant political fallout. Sadly, all key figures involved were acquitted despite the Supreme Court’s intervention and cancellation of 122 telecom licences. <h2><keyword id="455134" type="General" weightage="20" keywordseo="coal-allocation-scam" source="Orion">Coal Allocation Scam</keyword> (Coalgate) (2012) – ₹1,86,000 Crore </h2>The coal allocation scam, or "Coalgate," involved the illegal allocation of coal blocks to private companies between 2004 and 2009. The CAG of India estimated a loss of ₹1.86 lakh crore to the exchequer due to non-competitive bidding. Many high-profile politicians and industrialists were implicated, making this one of the largest political scandals in India. While some officials faced legal consequences, many key players were not prosecuted. But it did trigger policy reforms in the allocation of natural resources. <h2>DHFL Scam (2019) – ₹34,615 Crore </h2>Dewan Housing Finance Corporation Limited (DHFL) was accused of syphoning off over ₹34,000 crore through a series of shell companies and fraudulent loans. Investigations revealed that the promoters used these funds for personal enrichment and illegal political donations. The case came to light after an investigation by investigative journalists and was later confirmed by a report from KPMG. The case is ongoing, and the main accused are in custody. For now, regulations governing non-banking financial companies (NBFCs) have been strengthened. <h2>Yes Bank Crisis (2020) – ₹3,788 Crore </h2>Yes Bank, under its founder <keyword id="19899935" type="General" weightage="20" keywordseo="rana-kapoor" source="keywords">Rana Kapoor</keyword>, was involved in questionable lending practices. The bank made high-risk loans to companies already in financial trouble, which eventually turned into non-performing assets (NPAs). Kapoor was arrested, and the Reserve Bank of India had to step in to stabilise the bank. The case highlighted serious lapses in corporate governance and risk management. As of now, Rana Kapoor is facing trial, and legal proceedings are active. The RBI has also introduced new measures to monitor the health of banks more rigorously. <h2>Commonwealth Games Scam (2010) – ₹70,000 Crore </h2>The 2010 Commonwealth Games held in New Delhi were overshadowed by corruption allegations involving inflated contracts and kickbacks. <keyword id="23122398" type="General" weightage="20" keywordseo="suresh-kalmadi" source="keywords">Suresh Kalmadi</keyword>, the head of the organising committee, was arrested for awarding contracts at exorbitant rates. The estimated loss to the exchequer was around ₹70,000 crore. This scam tarnished India’s image on the global stage. Kalmadi was arrested but the case has not resulted in major convictions or recoveries, except for stricter oversight on large public projects and international event planning. These scams not only caused financial damage but also eroded public trust in India’s institutions. In response, India has tightened regulatory frameworks, improved corporate governance, and adopted stricter banking standards, although challenges persist in tackling large-scale fraud. <div type="Article" hostid="261" msid="112896255" title="I was scammed out of $300K in a 3-month-long government impersonation scam" mstype="2" mssubtype="0"></div>

10 financial scams that shook India: A dive into deception

<ul><li>The former governor of the Reserve Bank of India (<keyword id="30067" type="General" weightage="20" keywordseo="rbi" source="Orion">RBI</keyword>), <keyword id="6358908" type="General" weightage="20" keywordseo="raghuram-rajan" source="Orion">Raghuram Rajan</keyword>, believes that only a handful of <keyword id="2721952" type="General" weightage="20" keywordseo="crypto" source="Orion">crypto</keyword>currencies will survive the crypto hype.</li><li>Over 400 coins have hit the dust since April, translating to a 20% increase in six months.</li><li>Aritra Sarkhel, the Direct of Public Policy at the Indian crypto exchange WazirX, told Business Insider that it is a point of concern that there no laws on how and who can mint a new coin.</li></ul>The former governor of India’s central bank, Raghuram Rajan, believes that only a handful of cryptocurrencies will survive in the long run. In an interview with CNBC, he compared cryptocurrencies to chit funds — in the sense that they take money from people before going bust, leaving a line of disappointed investors in their wake. <div type="ExtQuote" text="Crypto may pose the same problem as unregulated chit funds which take money from people and go bust, a lot of people holding crypto assets are going to be aggrieved." auname="Former RBI governor, Raghuram Rajan, said in an interview with CNBC"></div> According to <a href="https://www.coinopsy.com/dead-coins/#other">Coinospy</a>, a website that tracks <keyword id="12608232" type="General" weightage="20" keywordseo="dead-coins" source="Orion">dead coins</keyword>, over 2,000 coins have come and gone since the very first cryptocurrency, Bitcoin, was created in 2009. OneCoin and BitConnect, for instance, used money from new investors to pay returns to existing holders — much like the Sahara Group Chit Fund Scam, which is one of the biggest corporate scams in India’s history. A more recent example is Squid Game token. In a ‘<a href="https://www.businessinsider.in/cryptocurrency/news/squid-game-cryptocurrency-trading-at-to-0-scammers-make-2-1-million/articleshow/87479063.cms">rug pull</a>’ scam, the developers took the project offline once it hit a price of $2,861, making off with over $2.1 million. In April, Coinospy reported that the number of coins to hit the dust had grown by over 35% as compared to the previous year with the tally at 1,949. Since then, that number has grown to 2,345 — a 20% increase in six months. <cmsannotation type="cmsannotation" annotationid="The lack of regulation leaves space for fraud" comment="subhead" text="The lack of regulation leaves space for fraud">The lack of regulation leaves space for fraud</cmsannotation> Experts have often talked about the need of balancing innovation versus regulation when it comes to crypto space. And, one of the main concerns is how to foster good use cases and filter out those that are fraudulent. “There are no laws to keep anyone from making a new coin. In a way, that’s good because that’s how innovation spreads, but there has to be some law. All of this has investors money [at stake] — whether it’s a 20 year old investor putting in ₹1,000 or a massive hedge fund putting in millions,” Aritra Sarkhel the Direct of Public Policy at the Indian crypto exchange WazirX, told Business Insider during a discussion on regulation in India. <div type="Youtube" id="f-xWw1y6G24" title="The Framework: Crypto Regulation And India" thumbUrl="https://i.ytimg.com/vi/f-xWw1y6G24/mqdefault.jpg"></div> According to Rajan, blockchain technology itself is not the enemy. Despite the regulatory challenges, he believes that the Indian government should allow blockchain to flourish because it makes transactions cheaper, especially when it comes to cross border payments like remittances. But, that doesn’t mean the government should turn a blind eye either. “What governments can insist on is getting information from crypto entities, when crypto entities get too big, the government can examine them more closely to ensure there isn’t fraud,” he told CNBC. <cmsannotation type="cmsannotation" annotationid="Indian amid forming its own laws to regulate cryptocurrencies" comment="subhead" text="Indian amid forming its own laws to regulate cryptocurrencies">Indian amid forming its own laws to regulate cryptocurrencies</cmsannotation> The Indian government is <a href="https://www.businessinsider.in/cryptocurrency/news/india-new-crypto-bill-threatens-to-ban-private-cryptocurrencies/articleshow/87874900.cms">expected</a> to discuss its own crypto regulations during the Winter Session of Parliament, which will kick off next week on November 29. No official draft of the proposed crypto bill has been shared with the public yet, however the agenda lists the crypto bill as one that will provide a framework for a central bank digital currency (CBDC) and ‘prohibit’ the use of ‘private’ cryptocurrencies subject to certain ‘exceptions’. <div type="image" title="crypto bill agenda" msid="87913982" hostid="261" caption="&amp;lt;p&amp;gt;India&amp;#39;s crypto bill is listed to come up for discussion during the Winter Session of Parliament in the lower house, the Lok Sabha, which kicks off on November 29&amp;lt;/p&amp;gt;"></div> The vague wording of the bill’s introduction led to panic selling on Indian crypto exchanges leading to a <a href="https://www.businessinsider.in/cryptocurrency/news/fud-takes-over-indian-crypto-markets-after-government-lists-crypto-bill-for-discussion/articleshow/87891795.cms">cryptocurrencies trading at a discount</a> in INR as compared to the US dollar. “While there are speculations that the government would impose a blanket ban on all private cryptocurrency, it doesn’t seem practical on account of various considerations,” explained L. Badri Narayanan, an executive partner at law firm Lakshmikumaran and Sridharan Attorneys. According to him, a ban would not be technologically enforceable since blockchains need cryptocurrency to function. Moreover, those who want to trade or invest in cryptocurrencies would just find another way to do so and inevitably create a grey market. “Bans only send folks underground. All technologies have pros and cons. We should work towards creating policies for managing the ills while reaping the benefits,” Dr.Sarabjot Singh Anand, the director of computer science and engineering at the BML Munjal University’s School of Engineering &amp; Technology, told Business Insider. The crypto bill had earlier been listed for discussion during the <a href="https://www.businessinsider.in/finance/news/indian-cryptocurrency-players-in-huddle-as-government-mulls-ban/articleshow/80610668.cms">Budget Session of Parliament</a> in February, however, it did not come to fore due to lack of time and the second wave of COVID-19. This time around those within the crypto community are hoping that won’t be the case with multiple closed-door discussions between stakeholders and the Ministry of Finance in the last 10 months. “Parliamentarians are a lot more informed than they were in February or last year. You will likely see a debate, and a healthy one. Also, there are other bills and business listed in Parliament — and it all depends on how much time the government spends on other items, which are also important,” the CEO of the advocacy group IndiaTech — which has been advising the Indian government on crypto regulation — Rameesh Kailasam, told Business Insider. SEE ALSO: <a href="https://www.businessinsider.in/investment/news/heres-a-quick-look-at-how-the-evolution-of-cryptocurrencies-has-played-out-in-india/slidelist/87902549.cms">India’s crypto regulations have been caught in limbo — here’s how the past few years have played out</a> <a href="https://www.businessinsider.in/cryptocurrency/news/fud-takes-over-indian-crypto-markets-after-government-lists-crypto-bill-for-discussion/articleshow/87891795.cms">FUD takes over Indian crypto markets after government lists crypto bill for discussion</a> <a href="https://www.businessinsider.in/investment/news/what-does-private-cryptocurrency-mean-in-india/articleshow/87887473.cms">Privacy coins, centralised cryptocurrencies, or being currencies — India is yet to explain what it means by ‘private’ cryptocurrency</a>

Raghuram Rajan believes only a handful of cryptocurrencies will survive the hype — over 400 tokens have hit the dust in the last six months

Trinamool Congress wins big in Bengal and BJP scores less than half of what it aimed for

<ul><li>President Ram Nath Kovind to address joint sitting of both houses of Parliament on the first day </li><li>Union Budget to be presented on July 5.</li><li>Triple Talaq among 10 key ordinances on table</li><li>Virendra Kumar to be pro-term speaker, Speaker elections on Wednesday. </li></ul>The 17th Lok Sabha is all set to begin functioning on Monday, June 17 a day after Prime Minister Narendra Modi’s government took charge of the office. On the top of government’s agenda are Union Budget, along with clearing a pending bill on abolishing triple talaq amongst other key legislations. The Union Budget will be presented on July 5, at 11:00 am, by the new Finance Minister Nirmala Sitharaman, Union Minister Prakash Javadekar <a href="https://www.livemint.com/politics/news/next-parliament-session-from-17-june-26-july-ls-speaker-to-be-elected-19-june-1559311708760.html">confirmed</a> at a press briefing on June 14. The Economic Survey, which summarises the annual economic development in the country, will be presented on July 4. The govt has promulgated as many as 10 ordinances for the session. Along with triple talaq,<a href="https://www.news18.com/news/india/in-its-first-lok-sabha-session-modi-govt-2-0-plans-to-convert-10-ordinances-into-law-2175295.html"> key ordinances</a> lined up are an amendment of the Indian Medical Council (Amendment) Ordinance, the Companies (Amendment) Ordinance, and the Banning of Unregulated Deposit Schemes Ordinance. Also on the list are Jammu and Kashmir Reservation (Amendment) Ordinance, the Aadhar and other laws (Amendment) Ordinance, the New Delhi International Arbitration Centre Ordinance, the Homeopathy Central Council (Amendment) Ordinance, the Special Economic Zone (Amendment) Ordinance and the Central Educational Institutions (Reservation in Teacher’s Cadre) Ordinance. The Indian Medical Council (Amendment) Ordinance will hope to allow a committee run the scam-infected Medical Council of India (MCI). The Banning of Unregulated Deposit Scheme <a href="https://www.news18.com/news/india/in-its-first-lok-sabha-session-modi-govt-2-0-plans-to-convert-10-ordinances-into-law-2175295.html">Ordinance</a> seeks to curb the menace of false schemes and set punishment for unregulated deposit schemes. This will help set-up a checking system on illicit deposit activities such as Shradha scam and Rose Valley chit fund scam. The Muslim Women (Protection of Rights on Marriage) Bill, 2019, popularly known as the<a href="https://www.livemint.com/news/india/triple-talaq-bill-to-be-reintroduced-in-parliament-1560348286816.html"> Triple Talaq Bill</a>, one of the signature legislative initiatives of the previous NDA government, was stuck in Rajya Sabha by the opposition over demand for closer scrutiny by a select committee. This will also to be re-presented to make it a law. Issued in February-March 2019, the previous government could not turn them into Acts in the last Parliament session. These ordinances will have to be converted into laws within 45 days once the 17th Lok Sabha begins, else they will lapse. On the first day, President Ram Nath Kovind will address the joint sitting of the two houses of Parliament. A pro-tem Speaker, who performs the duties of the Speaker from the day the session starts till the election, is also likely to be appointed the same day. Virendra Kumar is expected to be appointed as the protem speaker. He will be assisted by a panel of senior members. The first two days of the session will be devoted to oath-taking by 542 members of the lower houses of the Parliament. Two MPs will be nominated by the President from the Anglo Indian community. The Speaker of Lok Sabha will be elected on Wednesday. Both houses will also take up the Motion of Thanks on which PM Modi will give his response.

Union Budget and Triple Talaq are among key bills as the first session of India's new Parliament rolls on

Former Assam director general of police (DGP) <keyword id="645453" type="PERSON" weightage="100" keywordseo="Shankar-Baruah">Shankar Baruah</keyword>, who was interrogated by the Central Bureau of Investigation (CBI) last month in connection with the multi-crore <keyword id="1648812" type="UNKNOWN" weightage="100" keywordseo="Saradha-scam">Saradha scam</keyword>, was found dead today (Wednesday). He allegedly shot himself to death. 
 CBI officials had taken the him to an <keyword id="13222" type="CITY" weightage="60" keywordseo="SBI">SBI</keyword> branch near his house and inspected his account in that branch. Further details are awaited. 
 
Recently, we have reported that the Serious Fraud Investigation Office (SFIO) has founded group companies guilty in the multi-crore chit fund scam. The SFIO concluded that the schemes run by Saradha Group's 14 companies ran Ponzi Schemes, which were in violation of several provisions of the Companies Act, 1956. CBI is now investigating cases under the IPC under orders of the Supreme Court. You can read the complete report <a href="http://www.businessinsider.in/Group-Companies-Found-Guilty-In-Saradha-Scam/articleshow/42543901.cms">here</a>.

New Twist In Saradha Scam: Former Assam DGP Commits Suicide

The Serious Fraud Investigation Office (<keyword id="54673" type="ORGANIZATION" weightage="20" keywordseo="SFIO">SFIO</keyword>) has founded group companies guilty in the multi-crore chit fund scam. The SFIO concluded that the schemes run by Saradha Group’s 14 companies ran Ponzi Schemes, which were in violation of several provisions of the Companies Act, 1956. The investigating agency has completed the investigation and shared its report with Central Bureau of Investiations (<keyword id="6354572" type="ORGANIZATION" weightage="20" keywordseo="CBI">CBI</keyword>). 
	 
	The agency in the course of its investigation found out that the promoters, directors and other officials of these firms were using funds collected from the general public rather than income generated from investments. 
	 “The companies, their promoters, directors and managerial personnel have been found to be guilty on many counts for violation of various provisions of the Companies Act, 1956 including Sections 58A and 628 dealing with illegal collection of deposits and false statements, etc. Companies of the group which were declared by SEBI to be carrying out unauthorized ‘Collective Investment Schemes’ (CIS) will be prosecuted for violation of the SEBI Act instead of Section 58A of the Companies Act, 1956, as the former carries longer terms of imprisonment,” said a statement from <keyword id="6376435" type="ORGANIZATION" weightage="20" keywordseo="Ministry-of-corporate-affairs">Ministry of Corporate Affairs</keyword>. 
	 
	It also adds that the agency has found out several instances of violation of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. “As prosecution under this law are to be initiated by the State Governments concerned, the Report along with evidence is being shared with the CBI. The Report is also being shared with SEBI for proceeding against companies which were found to be running unauthorized/ illegal Collective Investment Schemes (CIS),” states the ministry in the statement. 
	 
	In one of its findings, the SFIO has also noted that the companies have violated provisions of the Indian Penal Code. “Since, CBI is now investigating cases under the IPC under orders of the Supreme Court, it has been decided to share evidence collected by the SFIO with CBI so as to avoid duplication in prosecutions”, said the ministry in the statement.

You Searched For "chit fund scam" and got 9 results

Andhra Chit fund scam: CID issues notice to Margadarsi chairman Ramoji Rao & others

ANI

CBI conducts raids in Maharashtra and Odisha over Chit fund scam

BI India Bureau

CBI Raids Another Company In Chit Fund Scam

BI India Bureau

10 financial scams that shook India: A dive into deception

Ashmita Gupta

Raghuram Rajan believes only a handful of cryptocurrencies will survive the hype — over 400 tokens have hit the dust in the last six months

Prabhjote Gill

Trinamool Congress wins big in Bengal and BJP scores less than half of what it aimed for

BI India Bureau

Union Budget and Triple Talaq are among key bills as the first session of India's new Parliament rolls on

BI India Bureau

New Twist In Saradha Scam: Former Assam DGP Commits Suicide

BI India Bureau

Group Companies Found Guilty In Saradha Scam

Purba Das

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