In the wake of action against chit fund companies by the district administration, the enforcement directorate (ED) has now decided to act against these companies throughout Madhya Pradesh. Specifically, the ED is trying to find out whether any of the companies operating in the state are involved in money laundering.
Sources in the ED said that they have written to the zonal IGs of Indore, Bhopal, Jabalpur and Gwalior seeking details about all such chit fund companies in their jurisdiction and the action taken by the local police against them.
In Indore, the drive against chit fund companies started in May 2013, when the administration raided and closed operations of around 15 companies. After a brief lull 11 more companies were discovered and targeted.
At present, the 26 chit fund companies which were operating in Indore have shut their shops here and most of the documents have been seized from them for purpose of investigation.
Of the 26 companies under scrutiny, FIR has been lodged against Tulip Global private limited under Madhya Pradesh Protection of Depositors' Interests Act 2000, while investigations are at various stages against the others.
Some cases are pending in special courts, while some are before the tehsildar's court, and in some others investigations is yet to be completed. In fact it was in Gwalior that action against chit fund companies started.
A PIL was filed in 2010 at the Gwalior bench alleging the chit fund companies were cheating the people. Subsequently, the district administration and police took action against the chit fund companies.