Warangal: Govt told to crack whip on chit fund companies

Warangal: The Communist Party of India (CPI) on Saturday sought the State government to focus on mushrooming chit fund companies in Telangana. Speaking at a party meeting in Shiv Nagar here, CPI National Council Member Takkallapally Srinivas Rao said that the onus is on the government to keep a tab on chit fund companies that have been cheating the people.

"The chit fund companies have been luring the people by offering higher interest rates and dividends. After succeeding in their effort, these companies are diverting funds to their real estate business. It has become a practice for the chit fund companies," Rao said. He accused the companies of harassing their customers without paying back their money after maturity. After running from pillar to post to collect their money, the customers are virtually surrendering to these companies by accepting whatever amount that was given to them. Pleading insolvency, some companies are giving land sites to the customers in lieu of money, Rao alleged, attributing it as a way of doing real estate business. He accused the authorities concerned for turning a blind eye to the mushrooming unregistered chit fund companies.

"We need more stringent laws to discipline chit fund companies. The government needs to seize the properties that have been acquired by the people's money under the Benami Transactions Prohibition Amendment Act, 2016. The onus is also on government to ensure refund of the chit amount to the customers," Rao said.