Uttarakhand News: The Uttarakhand government has introduced a new rule to take action against fraudulent chit fund companies that lure the poor and middle class with deceptive populist investment schemes. In many cases, individuals from outside the state have committed fraud in the name of chit fund companies, and the lack of concrete rules has hindered recovery efforts.
Government has initiated measures to provide relief to victims
Now, the government has initiated measures to provide relief to victims of these fraudulent companies by establishing a rule for action against them. District Magistrates in all districts have been appointed as nodal officers for this purpose following an order from the Secretary of Finance.
Government Cracks Down on Fraudulent Chit Fund Companies
Chit funds can be registered with the Registrar of Societies, Chits, and Firms, with Nainital and Dehradun being the designated registration offices in the state. However, in other districts, chit fund companies are registered at the Chief Treasurer’s office. Notably, Udham Singh Nagar district currently has no information about registered chit fund companies, and unregistered companies have frequently defrauded middle and lower-income individuals.
These fraudulent companies often attract a large number of investors by promising substantial returns on small investments, only to later close their offices and disappear. With the new rules in place, victims of such fraud may have an easier time recovering their lost investments.
Under the new rules, complainants will be required to provide details about the property in question. Victims of fraudulent chit fund companies can now file complaints with the District Magistrate’s office, which is empowered to seize or attach the chit fund company’s property and auction it.
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