List of companies investigated by govt. in last 3 Years

The details of companies investigated by the Ministry during the last three years and current year (till date) are enclosed as Annexure-I.

Chit Funds are registered by State Governments under the Chit Funds Act, 1982 – an Act administered by the Ministry of Finance but with responsibilities of implementation resting with the States. Cheating by Chit Fund company through fraudulent schemes is an offence under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. The power to investigate and prosecute lies with the State Governments. However for better identification of Chit Fund Companies, Rule 8(2)(b)(iii) of Companies (Incorporation) Rules, 2014 framed under the Companies Act, 2013, provides that if the company’s main business is financing, leasing, chit fund, investments, securities or combination thereof, its incorporation shall not be allowed unless its name is indicative of such related financial activities, viz., Chit Fund or Investment or Loan, etc.

Insofar as Companies Act is concerned, cases of violations of the provisions of the Act by Chit Fund companies are dealt with in accordance with the Act. So far the Ministry has ordered investigations against 96 such companies by Serious Fraud Investigation Office (SFIO) of this Ministry under the provisions of Section 235 of the Companies Act, 1956. These investigations are in addition to action initiated by State police authorities under the laws referred above.

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Rajya Sabha today.

Annexure – I

 ANNEXURE REFERRED TO IN ANSWER TO PART (a) OF RAJYA SABHA UNSTARRED QUESTION NO. 39 FOR 24^TH FEBRUARY, 2015 REGARDING CHIT FUND COMPANIES

 Details of companies investigated by the Ministry during the last three years and current year (till date)

 2011-12

 2012-13

2013-14

2014-15 (till date)

Source- PIB