<h1>Government Cracks Down on Chit Fund Frauds; 68 Companies Under Investigation by Serious Fraud Office and State Authorities.</h1> Chit Fund companies are regulated by the State Governments under the Chit Funds Act, 1982, with oversight by the Ministry of Finance. Fraudulent activities by these companies are offenses under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, with investigation and prosecution powers held by the State Governments. The Ministry of Corporate Affairs has ordered investigations into 68 companies by the Serious Fraud Investigation Office under the Companies Act, 1956. These investigations complement actions taken by State Police Authorities. This information was provided by a government official in a written response to a parliamentary question.