District collector Aakash Tripathi on Friday evening issued orders to seal the bank accounts of three chit fund companies functioning in Indore.
Action has been taken under Madhya Pradesh Protection of Depositors' Interests Act 2000.
The companies are G Life India Developers and Colonisers limited, M/s BNG Global India Limited and Rose Valley Hotel and Entertainment Company.
Letters have been issued to the bank branches where these companies have their accounts.
G Life India has bank accounts in Bank of India, ICICI Bank and Axis Bank, while BNG Global has bank accounts in Axis Bank and ICICI Bank, Bhopal.
The administration is also investigating Sai Prasad Company, Aeran Height and GN Gold Limited and BNP India Limited but no stern action has been taken against these companies so far.
Earlier, an FIR was lodged against a chit fund company, Tulip Company, and the case is currently in court.
However, Tripathi, who earned a name for himself in Gwalior for initiating acting against chit fund companies said, compared to Gwalior the problem is much smaller in scale in Indore.
“In Gwalior, there were 21 companies, a few of them local that had raised crores of rupees and we had received thousands of complaints against them,” the collector added.
So far, the administration has received only one complaint each against these companies, but they have decided to act in advance.
Also, none of these companies are local and only their branch offices are functioning in Indore.
However, the collector said he feels that these might be the tip of the iceberg and there might be other complainants who will come out in the open once the issue gets publicity.
Tripathi said after receiving the complaints, the concerned SDM issued notices to these companies but they did not receive a satisfactory reply and therefore further action was initiated. The schemes offered by these companies are varied.
They include doubling of money in six years and in some cases, free accident insurance policies etc have been thrown in.
The collector has acted against the chit fund companies under the Madhya Pradesh Protection of Depositors’ Interests Act 2000, but he is keen that cases be registered against these chit fund companies.