Relief must be provided to the victims of money circulation and other fraudulent schemes in Visakhapatnam and compensation should be paid on the lines of the West Bengal chit fund victims, M.V.S. Sarma, MLC from the North Andhra Graduates’ Constituency, said at a Legislative Council discussion on Tuesday.

Mr. Sarma raised the issue of Secured Investment Making Services (SIMS), to which thousands of people have fallen prey. He said some organisations like Raga, Magic, Iravat, and Srichakgra gold cheated people and sometimes ministers attending their programmes made their job easy. The companies were also boasting of an ISO certification, he added.

His demand was supported by the TDP and the Congress, and Minister Geetha Reddy assured him of quick action.

Ms. Reddy said the Rs.1 lakh compensation issue in West Bengal was being studied by a one-man judicial commission and the report had not been submitted yet. She replied that SIMS had collected Rs.340 crore from 48,439 persons and owed depositors Rs.112 crore.

The main accused Surendra Gupta and 11 SIMS directors were arrested and placed under judicial custody.

So far, Rs.14 crore has been recovered from attached properties. As of now, 11 cases have been booked in all the districts.

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