Crackdown on chit fund companies gathers pace in Chhattisgarh

The recoveries are part of the Chhattisgarh government's crackdown on the fly-by-night financial companies that duped people in the state

Chhattisgarh Chief Minister Bhupesh Bhagel
Chhattisgarh Chief Minister Bhupesh Bhagel
R Krishna Das Raipur
2 min read Last Updated : Feb 16 2023 | 11:13 PM IST
Ghanshyam Sahu, a resident of Uparwara of Durg, sold two acres of land to invest the proceeds in a chit fund company, only to realise he had been duped. Like hundreds others, Sahu had given up hope of getting the money back. So when he received Rs 9 lakh from the state government last month, he couldn’t believe his luck.
 
“I did not expect the money to be recovered,” he candidly told Chhattisgarh Chief Minister Bhupesh Baghel at an event in January.
Teejan Bai from Khursipar in Bhilai, who was also duped by a chit fund company, said she received Rs 3 lakh, which will now be used for the marriage of her children.

The recoveries are part of the Chhattisgarh government’s crackdown on the fly-by-night financial companies that duped people in the state. At a virtual programme chaired by Baghel last month, Rs 2.56 crore was returned to 3,274 duped chit fund investors of Durg district.

Baghel is personally monitoring the cases, as the Congress had vowed to take action against the fraudulent chit fund companies ahead of 2018 state polls. In its election manifesto, the party promised to return the money of people invested in different companies.

The state government had lodged 460 cases against 208 chit fund companies, 536 directors and 119 office bearers between 2015 and January 31, 2023 and 655 people have been arrested during this time. In 84 cases, the court has given the final order for the attachment of identified properties of 44 irregular financial companies whose estimated value is Rs 76.32 crore. In 54 cases, auction, recovery, agreement proceedings worth Rs 52.04 crore of 32 unregulated financial companies have been completed and the amount has been received in the government's account.

“As of now, Rs 30 crore have been returned to 37,000 people who were duped by fraud chit-fund companies,” Baghel said. The state government is taking strict action and the money is being returned to investors by attaching properties of fraudulent chit fund companies, he said, adding that Chhattisgarh was the only state in the country to give back money to people they lost to fraudulent financial firms. 

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :Bhupesh BaghelChhattisgarhchit fund

Next Story