DEO nabs fraudulent company found impersonating top-level groups
Kolkata: In a unique modus operandi to woo people into investing in chit fund schemes, the Directorate of Economic Offences (DEO) has found out a company that had been operating abroad under names of famous groups.
The DEO, which exercises power under the West Bengal Protection of Interest of Depositors in Financial Establishments Act (WBPIDFEA), is probing cases against 22 groups and it includes a company that had been operating with a name similar to a famous business house from Germany.
According to the investigating officers, they run a business house here with a name similar to a big firm in Germany and also stepped into the "money market" to gather funds through chit fund schemes. With the names being quite similar, it had become easier for its companies to convince people to invest with an expectation of high return.
Following the preliminary probe, six directors of the group were arrested. There were as many as eight directors of the group.
So far the investigating agency has come to know that the company has collected around Rs 120 crore from the market through its chit fund schemes and the number of depositors was around 1.5 lakh. The DEO is also preparing the list of the people who had invested in the group.
Besides investigating the cases of illegal collection of money from people after assuring high rates of return, the DEO is also creating awareness among people not to invest in such companies. Steps are also being taken so that people do not get swayed by the names of the famous companies. Instead, they must go through the documents properly and know properly about the group before going for any sort of financial investment.
It may be recalled that Chief Minister Mamata Banerjee had taken several steps to check illegal collection of money through chit fund schemes and also to ensure security of investors' fund. In a bid to do so, her government has introduced the West Bengal Protection of Interest of Depositors in Financial Establishments Act.
