Gujarat govt reviews action against Ponzi firms, urges citizens to be cafeful

The state government and the Reserve Bank of India Tuesday reviewed the action taken against various companies that had disappeared after collecting money from gullible investors by promising impossible returns.

State finance secretary Arvind Agrawal, RBI's regional director JK Dash, DGP (CID-Crime) Ashish Bhatia, and other senior officials attended the 36th State Level Coordinator Committee meeting.

Action taken against several companies that had committed financial frauds was reviewed in the meeting. Some of these companies include Adarsh Credit Co-op Society, Meadows Plotters and Structures, MRM Company, SSVV Brinzota India, Spita India Land Project, Siddhi Enterprise, Dhanlakshmi Prize Scheme, Jeevan Seva Company, Phenomenal Healthcare, and Vejalpore People Co-op Credit Society.

Agrawal urged citizens to guard against falling into the trap of fly-by-night operators in the lure of impossible financial returns, while Dash appealed citizens to approach RBI or police.

Cases have been registered against 51 companies in the state so far under The Gujarat Protection of Interest of Depositors Act and The Prize Chits and Money Circulation Schemes (Banning) Act for running Ponzi schemes and duping investors. The state government had earlier said that it plans to return money to victims of financial frauds by attaching and auctioning assets of fly-by-night operators.