Financial institutions offering unusually high rate of returns to gullible people and vanishing overnight may find it difficult to operate in the State.
The State government proposed to provide a toll-free number to Economic Offence Wing functioning under Crime Branch of State Police for lodging complaints by any individual in the State regarding floating and operation of any scheme including deposit, credit, multi level marketing and acceptance of deposits for real estate by offering unusually high rate of returns.
With instances of financial agencies vanishing after mopping up deposits from gullible people frequently coming to the notice, the State police has been asked to take proactive actions on receipt of any information or complaints regarding financial frauds.
According to Finance department sources, self-help cooperative societies, multi level marketing societies and real estate development agencies are attracting people by offering high rate of returns. After collecting a sizeable amount of deposits, these agencies are vanishing overnight leaving depositors high and dry.
The State government decided that till a State’s own act to protect interest of depositors gets presidential assent, State police would take preventive action against such unscrupulous financial companies.
Investors would be made aware about frauds being committed by financial agencies. The State government would also move Union Ministry of Corporate Affairs for accessing the records of Registrar of Companies to facilitate investigation about fraudulent companies. It was proposed to take a senior officer of Reserve Bank of India, Bhubaneswar as a member of State Level Coordination Committee.
At a recently held high-level meeting, it was decided that the State Cyber Crimes Cell would be strengthened.
This year the Crime Branch of Police was flooded with allegation of financial frauds committed by unscrupulous organisations.
Organisations offering high rates of interest under the scanner