Individuals in Chhattisgarh receive their money back from chit fund companies

Individuals in Chhattisgarh receive their money back from chit fund companies

Ghanshyam Sahu, a resident of Durg’s Uparwara, sold two acres of land with the intention of investing the money in a chit fund company, only to discover he had been misled. Sahu, like hundreds of others, had lost all hope of ever receiving his money back. So he couldn’t believe his luck when he received Rs 9 lakh from the state government last month.

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“I didn’t expect the money to be retrieved,” he admitted to Chhattisgarh Chief Minister Bhupesh Baghel at a January event.

Teejan Bai of Khursipar in Bhilai, who was similarly misled by a chit fund organisation, claimed she earned Rs 3 lakh, which she intends to use for her children’s weddings.

The recoveries are part of the Chhattisgarh government’s assault on shady financial firms that have deceived residents of the state. Last month, Baghel presided over a virtual programme in which Rs 2.56 crore was restored to 3,274 Durg district chit fund investors who had been defrauded.

Baghel is personally monitoring the cases, as the Congress has promised to take action against the fraudulent chit fund companies in advance of the 2018 state elections. The party vowed in its election manifesto to repay people’s money invested in various enterprises.

Between 2015 and January 31, 2023, the state government filed 460 cases against 208 chit fund businesses, 536 directors, and 119 office bearers, and 655 persons were arrested. The court has issued final orders in 84 cases for the attachment of specified properties of 44 irregular financial entities worth Rs 76.32 crore. In 54 cases, auction, recovery, and agreement proceedings involving 32 unregulated financial institutions totaled Rs 52.04 crore, with the proceeds deposited in the government’s account.

“Rs 30 crore has been restored to 37,000 persons who were deceived by fraudulent chit-fund businesses as of now,” Baghel added. The state government is taking rigorous action, and money is being refunded to investors by attaching the properties of fraudulent chit fund organisations, he said, adding that Chhattisgarh was the only state in the country to reimburse people who lost money to fraudulent financial institutions.

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