Investigation Against Companies

There are no provisions in the Companies Act, 1956 or 2013 relating to Chit Funds or ‘Chit Fund companies’. Provisions to this effect are contained in the Chit Funds Act, 1982 which is a Central Act administered by the Ministry of Finance (Department of Financial Services) but its implementation vests in the State Governments concerned who register entities running Chit Funds and regulate their affairs and proceed against violators including companies running Chit Funds without such registrations.  The Central Government has however, inter- alia, investigated affairs of 185 companies falling into the category of so called Chit Funds/MLM/Ponzi activities for violation of the Companies Act through Serious Fraud Investigation Office (SFIO) during the last three years and current year. 

 A list containing State-wise and year-wise details of chit fund/MLM companies ordered for investigation during the last three years and current year (upto 31.10.2016).

2013-14

 2014-15

 2015-16

 2016-17

This was stated by Shri Arjun Ram Meghwal, Minister of State in the Ministry of Corporate Affairs in written reply to a question in Lok Sabha today.