The State Government is preparing to clamp down heavily on non-banking, chit-fund and multi-level and micro finance companies cheating investors. Taking the duping incidents seriously, Chief Minister Raman Singh has directed Director General of Police (DGP) AN Upadhyay to issue circular to all District Superintendent of Police for taking strict action against such persons and companies.
The DGP has released a circular in this connection. In the circular, he instructed for the formation of committees at Gram Panchayat and Civic Body level. These committees will keep an eye on such companies. The DGP also stressed over the need for involvement of public representatives in the committees. "At police station level, these committees would be informed about working style and business of companies so that awareness could be generated among the masses. Youths should be specially cautioned about such schemes," the DGP stated.
He further stated that these kinds of companies are carrying out their illegal business in rural and urban areas. These companies lure people in the name of getting the deposited amount doubled in short duration, offering plots or some expensive items. After collecting money in installments, these companies disappear and after police gets information about such companies, action is taken against them, he said.
The modus operandi of such companies is that they get themselves registered with Registrar of Companies in any place across country. The place wherever they operate, they appoint youth as their agents and pay attractive commission in return for the collection of money.