| Visakhapatnam:Visakhapatnam,Andhrapradesh money circulation companies collected whopping Rs 397 cr in two years span and shut down the companies.People lost huge money in these companies.
Many fly-by-night operators who promise to make one rich overnight, disappear no sooner than they appear with grandiose advertisements and attract lakhs, nay, even crores of rupees from gullible people despite warnings by the authorities.
“Our action is very tough and prompts in arresting these offenders and attaching their properties,” says Deputy Commissioner of Police P Viswaprasad. “The RBI has stipulated certain rates of interest. Apply logic when someone comes to you with lucrative offers,” the DCP cautioned the people. All new ‘financial’ institutions will come under the scanner, he added.“The Commissioner of Police is authorised to call for records even if no fraud is detected,” he said and added “we will act tough against such offenders and suspicious characters.”
The break-up of the fraudulent institutions which downed their shutters during the last two years is as follows:
*Suraksha Infra Ltd (Rs 5 crore),
*Magic Resorts Pvt. Ltd (Rs 23 crore),
*Raaga Avenues and Ventures (Rs 34 crore),
*Security Investment Making Services – SIMS (Rs 300 crore)
*Spark Resorts (Rs 20 crore),
*Sri Chakra Gold Farms and Villas India Ltd (Rs 15 crore).
*Akshaya gold (200 crores)
Chit fund frauds, bank scams, unincorporated deposit-taking institutions, backdoor school admissions, economic offences, job rackets, fake certificate racket, inferior type of contract works – to name a few, are some of the white collar offences ruling the roost now – thanks to the people’s lack of commonsense in reasoning their genuineness. What matters to most customers is the momentary joy that they would get a ‘good’ rate of interest for their deposits, not realising the shock and trauma in store.
To get their business going these “firms” too keep up their promises and once the ‘big time’ comes, they call it a day. In spite of rise in such types of offences, the police records do not reflect the ground reality. This has been attributed to the fact that most of the victims do not come forward to lodge a complaint, because of the long procedures of probe involved.
To plug spread of such offences, the Reserve Bank of India, had in February 1984, made it mandatory that RBI clearance certificate, for starting such institutions, must be published along with the advertisement and prospectus issued by them in leading news dailies. But none of them seem to comply with this order. Under chapter III C, Section 45 S (I) of the modified RBI Act, non-banking institutions, which are not corporate bodies, are prohibited from accepting deposits. With the mushrooming of unincorporated finance bodies, the RBI in 1987 has written to all the State governments to instruct their district and police authorities to ensure effective enforcement and prosecution in appropriate cases.