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HindustanTimes Mon,14 Jul 2014

Ponzi schemes: Govt to auction property of defaulters

HT Correspondent , Hindustan Times  Mumbai, May 07, 2013
First Published: 01:38 IST(7/5/2013) | Last Updated: 01:40 IST(7/5/2013)

The Maharashtra government has decided to auction property of those who have cheated investors of crores of rupees through chit funds and Ponzi schemes, home minister RR Patil said on Monday.

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The economic offences wing of the police has filed 124 cases for duping 7 lakh depositors in the city of Rs1,175 crore. The police have already attached properties of the accused, which are worth Rs. 891 crore.

“Properties of the concerned would be auctioned and investors’ money paid back, as per provisions in the law,” Patil said.

Meanwhile, Bharatiya Janata Party (BJP) leader Kirit Somaiya alleged that the state government was dragging its feet in action against chit fund companies that were functional in the state.  

He also alleged that deputy chief minister Ajit Pawar shared dais with heads of one of the companies.

Somaiya alleged that of the 13 companies that are operational in seven states, two are from the western Maharashtra as per the CBI reports. “The companies – Samruddha Jeevan Foods Limited and Sai Prasad India Limited —collect deposits under various ponzi schemes, including money collected against schemes of livestock, land units,” he said in a press conference at Mantralaya.


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