MLM / Chain Money
Multi-state cooperatives’ are helping transfer funds for Ponzi schemes says Standing Committee
Since 2010, the number and amount of multi-state cooperatives have increased 100 times and now become some kind of a shelter for illegitimate funds for Ponzi schemes, the Moily Committee said in its report calling for better regulation 
 
In a startling expose, the Parliamentary Standing Committee on Finance has said, multi-state cooperatives under the Agriculture Ministry, operating without any financial regulatory over sight, have become a conduit for transferring huge amount of money for dubious Ponzi schemes that are ripping off the savings of people across India. 
 
The Committee headed by Congress leader M Veerappa Moily categorically says that since 2010, the number and amount of multi-state cooperatives have increased 100 times and now become some kind of a shelter for illegitimate funds.
 
"It seems that the present regulator for multi-state cooperatives i.e. Central Registrar falls under Ministry of Agriculture, which do not have any financial regulatory infrastructure. As number and amount of multi state cooperatives have increased hundred times since 2010, the Committee would suggest that the enforcement aspect with regard to financial schemes operating through multi state cooperatives be shifted to Department of Economic Affairs under Ministry of Finance, since the multi-state cooperatives have now become some kind of a shelter for illegitimate funds, which seemed to have surprisingly escaped the notice of the concerned Authorities, particularly the Central Registrar under Ministry of Agriculture," the Committee said in its report presented to the Lok Sabha Speaker on 7 October 2015. 
 
Interestingly, Nationalist Congress Party leader Sharad Pawar was the Minister for Agriculture in the Manmohan Singh government since 2004. The Central Registrar in the Ministry of Agriculture regulates Multi state cooperative societies.
 
According to the Report, some of the bogus companies running Ponzi schemes, which have transferred their funds and assets to multi state cooperatives include, Samruddha Jeevan Foods Ltd, Sai Prasad, Utkarsh Plotters & Multi Agro Solutions, PGF and PACL, Agri Gold Farm Estates and Saradha Chit Fund.
 
The Moily Committee recommended the government to institute special audit for multi-state cooperatives so that this scam can be unearthed and corrective action taken immediately. "In this regard, the Committee would also suggest that the regulatory regime in respect of multi-state cooperatives should be streamlined and tightened so that they do not become an instrument of diverting and shielding illegal funds from Ponzi companies," the report said.
 
In its deposition before the Committee, the Department of Agriculture & Cooperation was asked about the abnormal increase in multi-state cooperatives. "As and when Reserve Bank of India (RBI) or Securities and Exchange Board of India (SEBI) has informed to this Department that particular society is involving in the collection of deposits from the public/ nominal members, the concerned Registrar of Cooperative Societies (RCS) of the States have been requested to conduct inspection u/s 108 of the Multi-State Cooperative Societies Act, 2002 (MSCS Act) and also the societies have been directed to refund the amount collected from the nominal members," the Department stated.

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COMMENTS

Benny Stephan

2 years ago

I have invested for my life time savings for 6 years and now its been more than 2 years and I am yet to get the return from Pacl India Limited. A case against pacl has been running for more than 17 years. The legal proceedings are very slow in India. I would also blame the companies for taking advantage of the judicial system in India. I also blame the regulators Sebi and Sat. I also blame the local police in India. I also blame CBI, ACB. I am an Aam aadmi who has been waiting for years to get the returns and nobody seems to be helping us whatsoever to get the returns. Everyone is trying to delay the returns including the company pacl itself and now the congress leader by calling another special inspection.

REPLY

Shirish Sadanand Shanbhag

In Reply to Benny Stephan 2 years ago

Contact Moneylife Foundation, certainly you may get some line of action to redress your grievances. Please send your details at
moneylife.in/lrc.html

Benny Stephan

In Reply to Shirish Sadanand Shanbhag 2 years ago

Thank you Shirish.

Shirish Sadanand Shanbhag

In Reply to Benny Stephan 2 years ago

Contact Moneylife Foundation, certainly you may get some line of action to redress your grievances. Please send your details at
moneylife.in/lrc.html

CBI raids 10 places in chit fund scam
The CBI on Tuesday searched 10 locations in Delhi, Odisha, Assam and West Bengal against private company Tower Infotech Group in its ongoing probe in the multi-crore-rupee chit fund scam.
 
The places raided by the probe agency include one each in Delhi, Odisha and Assam, while the rest seven were in Bengal.
 
Sources in the Central Bureau of Investigation (CBI) said the raids were conducted at the residences of managing director Ramendu Chattopadhyay, directors Udyan Banarjee and R.K. Basu and offices of the company.
 
A total of 246 cases have been registered by the CBI against 128 companies, including Saradha Group, Rose Valley, Unipay 2 U, Jeevan Suraksha, Prayag, Abyss Assam Group Co, Basil International Limited and Daffodils Group of Companies.
 
At present, the chit fund cases are spread in various trial courts across Bengal and the CBI wants three special courts in Kolkata to deal with them.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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CBI moves court against bail to Saradha accused
The CBI on Tuesday moved the Calcutta High Court seeking cancellation of bail granted to Saradha accused West Bengal Transport Minister Madan Mitra.
 
Mitra, indicted by the agency of cheating, conspiracy and criminal breach of trust in the multi-crore-rupee scam, was granted bail by a lower court on Saturday nearly 11 months after his arrest.
 
A division bench of Justice Harish Tandon and Justice Ishan Chandra Das granted leave to the Central Bureau of Investigation (CBI) to move the petition in the court and serve a copy of it to Mitra's counsel.
 
The move came on a day when Mitra, who was on Sunday discharged from the government-run SSKM Hospital where he spent most of his incarceration period, was admitted to a city hospital.
 
Mitra's moving to a hospital yet again drew ridicule from opposition parties which have been strongly criticising the SSKM hospital authorities for finding him fit within 24 hours of getting bail.
 
According to jail authorities, Mitra spent less than 50 days in the prison since he was sent to judicial custody on December 19.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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