The Ministry of Corporate Affairs has taken note of the misuse by certain “Chit Fund Companies” who have raised huge sums of money from the public at large. The State Governments are the appropriate authorities for regulation of such chit Fund companies/Schemes under the Chit Funds Act 1982. However, in view of the larger public interest involved in these cases, and concerns regarding misuse/laundering by such companies of the ill gotten wealth, and the possibility that the promoters of these companies may strip these companies, it has been decided by the Ministry of Corporate Affairs to set up a Special Task Force in the Serious Fraud Investigations Office (SFIO) to investigate the affairs of such companies. Accordingly, all investigations into such companies are being entrusted to SFIO with immediate effect.

The Task Force will also co-ordinate with other law enforcement agencies and regulators wherever required.

KKP/sg

(Release ID :95035)

Chit fund regulation: central SFIO task force to investigate alleged misuse and coordinate with enforcement agencies. Constitution of a Special Task Force within the Serious Fraud Investigation Office (SFIO) to investigate chit fund companies amid concerns of misuse, alleged laundering, and promoter asset stripping; the Ministry of Corporate Affairs has entrusted all investigations of such companies to SFIO with immediate effect while noting that State Governments remain the appropriate regulators, and the Task Force will coordinate with other law enforcement agencies and regulators as required.