Vijayawada

A.P. to crack whip on erring chit fund firms

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Finance Minister Yanamala Ramakrishnudu has assured the Legislative Council that the State government will incorporate stringent provisions in the legislation to prevent malafide activities of chit fund companies.

Earlier, Telugu Desam member Nannapaneni Rajakumari raised a question in the House on Tuesday about the fraudulent chit fund companies in the State terming them as ‘cheat fund companies’ and the action taken to regulate them.

Gullible people attracted by the higher rate of interest promised by such companies were becoming unsuspecting victims when such firms closed shop over night and disappeared. Many such frauds were reported in the last 10 years particularly from Visakhapatnam,Vizianagaram, Kurnool, Prakasam and Guntur districts.

She demanded that the government should initiate measures to recover money misappropriated by them and return it to people, who deposited their hard earned money with these companies.

Leader of Opposition C. Ramachandraiah said the complaints lodged against chit fund companies were still pending with the police not initiating any action by allegedly accepting bribes. Such incidents became universal and tough laws were needed to check the menace. Satish Reddy (TDP) demanded measures for asset liquidation of such unscrupulous chit fund companies.

Deputy Chief Minister and Home Minister China Rajappa said the cases were handed over to the CID and a public awareness campaign would be launched to caution people.

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Printable version | Jan 27, 2020 9:55:56 PM | https://www.thehindu.com/news/cities/Vijayawada/article11206937.ece

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