<h1>63 Chit Fund Companies Under Investigation for Fraud; Violations of Chit Funds Act and Companies Act Probed.</h1> Chit fund companies involved in defrauding investors are being investigated under the Chit Funds Act, 1982, and the Prize Chits Money Circulation Schemes (Banning) Act, 1978, with state police authorities leading the investigations. The Minister of Corporate Affairs informed the Lok Sabha that violations of the Companies Act, 1956, by these companies are being examined by the Ministry of Corporate Affairs, including the Serious Fraud Investigation Office (SFIO). Currently, 63 companies are under investigation by both police authorities and the Securities and Exchange Board of India (SEBI), with SFIO focusing on breaches of the Companies Act.