M.V.S. Sarma demands compensation to victims

Relief must be provided to victims of money circulation and other fraudulent schemes that duped people in Visakhapatnam and compensation paid on the lines of chit fund victims in West Bengal, MLC from North Andhra Graduates’ Constituency M.V.S. Sarma said.

The Legislative Council on Tuesday discussed the issue raised by Mr. Sarma on SIMS duping thousands of people. The MLC said some other 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 ISO certification, he said.

His demand was supported by TDP and 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 one-man judicial commission and the report was not submitted yet. She said in her reply 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 under judicial custody.

So far Rs.14 crore has been recovered by attaching properties. Covering the case in all the districts, 11 cases have been booked.


  • The companies are boasting of ISO certification, he says

  • Minister Geetha Reddy assures him of quick action in the case