Financial Manipulation by Chit Funds
Chit Funds playing with investors’ money
Among the many articles written on financial fraud, the manipulation of chit fund companies was laid bare. Sudhakar wrote about how chit funds in parts of the state were inflating the value of land and properties while mortgaging them to the government as collateral worth crores. Land worth Rs 8.5 lakh was being shown as worth Rs. 1 crore and the same deed was used to get other securities too.
After the publication, the Telangana Registration and Stamps Commission ordered a probe into the violations. Officials ordered the verification of each and every case of mortgage of lakhs of subscribers from various chit fund companies. Two chit fund companies were forced to shut down after they failed to pay their subscribers.
Links:
https://timesofindia.indiatimes.com/city/hyderabad/cheat-funds-thrive-by-inflating-land-value/articleshow/62192021.cms
https://timesofindia.indiatimes.com/city/hyderabad/two-defaulter-chit-fund-firms-forced-to-wind-up/articleshow/62191824.cms
https://timesofindia.indiatimes.com/city/hyderabad/state-govt-orders-probe-into-big-fraud-by-chit-fund-firms/articleshow/62300871.cms
