Over 50 Ponzi Companies Active In Odisha: RBI To Crime Branch

Bhubaneswar: The Reserve Bank of India (RBI) has alerted the Crime Branch on the functioning of over 50 chit fund companies in Odisha.

The apex bank informed the matter at a high level quarterly meeting it had organized at the conference hall of its office here on April 11 which senior RBI and Crime Branch officials were present.

The officials of the apex bank informed the meeting that despite the arrest of the owners of the leading chit fund companies, the activities of these companies has not stopped.

They further said that some of the blacklisted chit fund companies have begun their illegal activities by changing the name of their company and collecting money from the people after opening the branch offices in the neighbouring states.

Besides, the officials also said that more than 50 chit fund companies are active and running their business in Odisha at present.

Notably, RBI had in January this year had informed the Crime Branch police that some of the leading and blacklisted chit fund companies like the Microfinance Credit Cooperative Society, Samruddha Jivan Multi-state Multi-purpose Cooperative Society, PICL Multi-state Credit Cooperative Society and Sahara Credit Cooperative Society are still collecting money from the open market.

Later, on March 7 this year, the apex bank had again alerted the Crime Branch that some major chit fund companies like the Artha Tatwa Group, Microfinance Credit Cooperative Society, Swastik India and Samruddha Jivan Multi-state Multi-purpose Cooperative Society are still active in the state.

Acting on the information provided by the RBI, the Crime Branch had later come up with a toll free number 18003457103 and requested the people to give information about the chit fund company operating in their areas.

Through the toll free number, the Crime Branch received about 5000 calls from the people.

Since last three months, the Economic Offences Wing (EOW) of the Crime Branch has arrested the owners and senior staffs of the chit fund companies like the Land India, Oscar, Vista and Sribhumi.

The RBI report suggests that the chit fund companies are able to expand their network in the state due to the inaction by the State Police and the Crime Branch.

Informing the media on condition of anonymity, a senior Crime Branch official said that report of the RBI that chit fund companies such as the Artha Tatwa Group, Microfinance Credit Cooperative Society, Swastik India and Samruddha Jivan Multi-state Multi-purpose Cooperative Society are active in the state, is not true.

“The Crime Branch has kept a strict vigil on the aforesaid chit fund companies and efforts are on in association with the RBI to make people aware of the illegal chit fund activities,” he pointed out.