Sri (test) 23 June 2011

Chit fund Fraud

I have invested 1 LAKH in a private chitfund company as 2000 per month for 24 months .

Unfortunately I also started the second chit as the first chit is going to be completed in 2 months.

After two months, I asked the 1LAKH amount to be withdrawn as the chit is completed, But I came to know that it was too late to know that this chit fund guy is in a big loss and not paying a single penny to any other chit memebers.

I had a big argument with that guy and also stopped paying my second chit amount. he promised me to pay back some amount out of that but never did that.

after 5 months he came to me with his staff and said his apologies for what ever happend before, and gave me 1 LAKH bond which has meturity date on 2013 and with 12% intrest rate.

I am really totally confused with that, whether is this the legal bond or just a fake document.

PLEASE PLEASE PLEASE HELP ME.

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4 Replies

(Guest)

There is no secutiry for your amount though bond has been given to you. better file a criminal and civil case against the chit fund company/person to recover the amount. because he is cheating. it is upto you to proceed or not?

1 Like

Sri (test) 30 June 2011

Thanks a lot sir for your advice.

I will sure file a criminal case against chitfund, but my only concern is that , will it be too expensive to complete this process?

A V Vishal (Advocate) 30 June 2011

FIRST OF ALL IS THE CHIT FUND REGISTERED LEGALLY. SECONDLY, THE CHITFUND CANNOT GIVE YOU A BOND PAYABLE IN 2013 AS CHITFUNDS ARE NOT NBFC'S AND THEY REQUIRE PERMISSION FROM THE RBI TO ISSUE BONDS AGAINST DEPOSITS, IF THEY (I FEAR) DON'T HAVE THE REQUISITE PERMISSIONS THEN YOU MAY NOT GET THE AMOUNT EVEN IN 2013. THE ONLY COURSE IS TO FILE A POLICE COMPLAINT AGAINST THE CHIT FUND MANAGEMENT FOR CRIMINAL BREACH OF TRUST AND CHEATING. EXPENSES MAY DIFFER ACCORDING TO THE CASE, IT IS VERY DIFFICULT TO SAY HOW MUCH IT WILL COST BECAUSE YOU END UP BRIBING THE POLICE, PAYING THE LAWYER'S FEE, COURT RELATED EXPENSES, WASTAGE OF VALUABLE TIME AND ENERGY.

m.kameswaran (student) 17 August 2017

i joined in a chitfund( not registered) conducted by neighbor for 2,00,00 rupees. i paid 5 months after that i could not pay , so i asked to return the paidup amount. but he is not ready to repay the amount. now 15 months have gone. now he could not conduct chit and all members are asking their money back. his response is the same for all. still not ready to pay my amount. can i send lawyer notice for recovery of money or file cheating complaint in police station.