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. Owners and officials of 10 companies have been booked in the case, they added.HT ImageAccording 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.