CID probes multi-state ₹10k-crore ‘chit-fund’ fraud

The Madhya Pradesh Criminal Investigation Department (CID) has unearthed a suspected chit-fund fraud involving more than ₹10,000 crore and nearly 35 million investors across 17 states, officials aware of the matter said on Monday

Published on: Aug 25, 2026, 08:18:30 IST

By Shruti Tomar, Monika Pandey, Bhopal/Jabalpur

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The Madhya Pradesh Criminal Investigation Department (CID) has unearthed a suspected chit-fund fraud involving more than ₹10,000 crore and nearly 35 million investors across 17 states, officials aware of the matter said on Monday. Owners and officials of 10 companies have been booked in the case, they added.

According to CID officials, the accused floated fake companies under different names in several states and lured people with promises of doubling their investments within a short period. “They collected deposits through local agents and managers, while funds were ultimately transferred to company owners,” said a CID note.

In Madhya Pradesh alone, more than 210,000 people invested ₹492 crore in the companies, the officials said.

CID inspector general Rajvardhan Maheshwari said, “We received 11 case files related to chit-fund fraud in Ashoknagar, Tikamgarh, Damoh, and Vidisha districts. The investigation revealed that 1,600 investors were cheated of more than ₹42 crore.”

He added that the accused registered their societies with the Central Cooperative Society under the ministry of agriculture and farmers welfare instead of at the state level, enabling them to operate across states. CID has named 16 accused in the case. “We are investigating how the entire nexus is being operated across India,” Maheshwari said.

“The companies operated in 17 states, including Uttar Pradesh, Delhi, Uttarakhand, Assam, Bihar, Haryana, Himachal Pradesh, Jharkhand, Odisha, West Bengal, Gujarat, Rajasthan, Maharashtra, Chhattisgarh, Karnataka, and Punjab. FIRs have been registered in these states as well,” he added.

ABOUT THE AUTHOR
Shruti Tomar
I have spent over a decade chronicling Madhya Pradesh’s political and social landscape, covering politics, investigative journalism, crime, human interest, and government policy, blending sharp insight with ground‑level depth. I have closely tracked three assembly elections, three Lok Sabha elections, leadership transitions in MP while exposing governance lapses, tender irregularities, and flawed policy rollouts. My reports have revealed gaps in the Cheetah project, irregularities in medical education, rigging in recruitment exams, and loopholes in policy implementation. In crime reporting, I have moved beyond FIRs to map systemic patterns — from organised crime networks and gender‑based violence to custodial accountability — balancing urgency with sensitivity. My journalism is defined by a commitment to human interest. I have profiled the marginalised Bancchda community, documented atrocities against tribal groups, and highlighted efforts to preserve their culture through heritage liquor and revival of spiritual practices. I have reported on farmers struggling with failed MSP promises, giving voice to those often reduced to statistics in policy files. Passionate about field reporting, I have reported on rampant sand mining in Chambal and Narmada, pharmaceutical companies supplying medicines under altered names, the dire condition of schools and colleges, the plight of commercial sex workers, and skewed sex ratios in specific districts. Beyond deadlines, and as HT’s state correspondent and assistant editor in Madhya Pradesh, I engage with ministers, farmers, students, and activists, believing the best policy stories begin with a single human voice. A postgraduate in Journalism and Mass Communication, I also hold a diploma in sports journalism.Read More

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