Don't invest blindly in schemes promising attractive returns: Maha CM to citizens

Mumbai, July 1 (IANS) Amid rising cases of cheating by Ponzi scheme operators, Maharashtra Chief Minister Devendra Fadnavis on Tuesday appealed to the citizens not to invest blindly in schemes promising attractive returns.

He told the state assembly that the police have undertaken an extensive awareness campaign appealing to the people not to invest in schemes promising high interest rates.

Fadnavis intervened during question hour on a question raised by BJP legislator Bhimrao Tapkir from Khadakwasla constituency relating to cheating by a company promising higher returns. The Chief Minister clarified that the police have no role in initiating action against such companies after they launch their operations, as they have to take approval under the Company Rules and not from the police.

“The government has started the Economic Intelligence Unit (EIU) and initiated action against the companies in their advertisements promising higher returns. The EIU monitors investment and financial institutions across the state. This unit aims to track financial transactions and ensure compliance with regulatory permissions to curb fraudulent activities,” said the Chief Minister.

“Creating awareness is of paramount importance. Several cases have happened, and it was noticed that such companies are not registered. These companies function without any due approvals. They advertise and collect their money. They provide the assured rate of interest for two to three months and later wind up their operations and vanish,” he explained the modus operandi of operators of such schemes.

“I want to again appeal to the citizens not to keep faith in companies offering unrealistic returns. Check whether they have the necessary approvals and on what basis they are assuring high interest rates. No one spends money from their pockets. People should be aware of such schemes. Police will further step up the awareness campaign,” he told the state assembly.

During the budget session held in March, the Chief Minister had warned that schemes offering higher returns are often fraudulent and urged citizens not to invest.

Speaking about the Torres scam, he had emphasised the need for public awareness to prevent people from falling prey to Ponzi schemes that promise unrealistic returns such as double or triple profits.

--IANS

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