The modus operandi of the chit funds is very simple. They start with a well-decorated office fitted with computers and other modern gadgets. Gradually they open different types of business along with investment schemes.
CHIT FUND companies are playing a dubious role in the country, particularly in Tripura. The government is worried about the increasing number of chit funds, particularly in the rural areas. To gain the confidence of people, chit funds are now engaged in multiple activities including publishing newspapers. Finance Minister, Badal Chowdhury appealed to people to stay away from the chit funds. In several cases, chit funds cheated the people and ran away with their money.
The modus operandi of the chit funds is very simple. They start with a well-decorated office fitted with computers and other modern gadgets. Gradually they open different types of business along with investment schemes. Among the supporting business, construction business is very common. Some of the big players are also involved in several agro-based businesses. Showing the profit in those businesses, chit fund operators lure common people to invest in those businesses. People subscribe with a hope of extraordinary return within a specified period. It is true that people have received the promised amount in certain cases. However, number of allegations relating to loss of money of the investors is also alarming and growing in numbers.
It may be noted that most of the chit funds institutions have their head office located at other states. So, it is easy for the fund managers to flee from the state and hide elsewhere. Ultimately, poor people lose their hard-earned money. For common people, it is very difficult to distinguish between a fraud scheme and a genuine one.
The state government and state police department are willing to act against the chit fund institutions. However, such institutions have cleverly camouflaged their main business behind other business activities. As a result, taking action against the offender is a big task. A dangerous trend is fast emerging in Tripura. Chit fund firms are entering into print and electronic media. These firms have launched daily newspapers and purchased slots in electronic media. Reportedly, few accredited journalists have joined and are working in those newspapers. In Tripura, most of the newspapers play crucial role in shaping public view as well as to put pressure on the government. As the opposition party, Congress, is virtually non-existing, role of the newspapers have increased in many folds. Opposition party is silent about the chit funds. Several newspaper published news relating to chit funds and the government swung into action.
Several experts are worried about new tactics of the chit fund firms. These funds are using newspaper and electronic media as vehicles to reach to common people. Each newspaper of chit fund companies carries advertisements relating to the activities in detail. Sales representatives are showing the newspaper to the rural people and trying to gain their confidence. Further, these newspapers act as a protection shield against any campaign relating to chit fund companies by other newspapers. Involvement of journalists with the chit fund firms through newspaper is a dangerous trend, stated a senior journalist of the state.
Government sources revealed that a group of NGOs is also engaged in chit fund activities. Recently, security personnel sealed the office of an NGO. However, security personnel failed to recover investors’ money. In an effort to curb such fraud schemes, the government has initiated several effective steps. Obviously, the steps are not adequate to control the chit funds. Any one can feel the growing influence of chit funds all over the state.
On the other hand, many people acknowledge that if the state government can properly manage and control chit funds, these firms may play an important role in the financial development of people. A website mentioned that chit funds in Kerala helped people to access credit easily. Even there exists a chit fund called Kerala State Financial Enterprise under the Kerala Government. Although the rate is not alarming, yet misuse of such funds happens. In Tripura, chit funds have yet to play a constructive role. Unless and until people become more conscious about the possibility of financial loss, the problem will persists. By Jaydip
The modus operandi of the chit funds is very simple. They start with a well-decorated office fitted with computers and other modern gadgets. Gradually they open different types of business along with investment schemes.
CHIT FUND companies are playing a dubious role in the country, particularly in Tripura. The government is worried about the increasing number of chit funds, particularly in the rural areas. To gain the confidence of people, chit funds are now engaged in multiple activities including publishing newspapers. Finance Minister, Badal Chowdhury appealed to people to stay away from the chit funds. In several cases, chit funds cheated the people and ran away with their money.
The modus operandi of the chit funds is very simple. They start with a well-decorated office fitted with computers and other modern gadgets. Gradually they open different types of business along with investment schemes. Among the supporting business, construction business is very common. Some of the big players are also involved in several agro-based businesses. Showing the profit in those businesses, chit fund operators lure common people to invest in those businesses. People subscribe with a hope of extraordinary return within a specified period. It is true that people have received the promised amount in certain cases. However, number of allegations relating to loss of money of the investors is also alarming and growing in numbers.
It may be noted that most of the chit funds institutions have their head office located at other states. So, it is easy for the fund managers to flee from the state and hide elsewhere. Ultimately, poor people lose their hard-earned money. For common people, it is very difficult to distinguish between a fraud scheme and a genuine one.
The state government and state police department are willing to act against the chit fund institutions. However, such institutions have cleverly camouflaged their main business behind other business activities. As a result, taking action against the offender is a big task. A dangerous trend is fast emerging in Tripura. Chit fund firms are entering into print and electronic media. These firms have launched daily newspapers and purchased slots in electronic media. Reportedly, few accredited journalists have joined and are working in those newspapers. In Tripura, most of the newspapers play crucial role in shaping public view as well as to put pressure on the government. As the opposition party, Congress, is virtually non-existing, role of the newspapers have increased in many folds. Opposition party is silent about the chit funds. Several newspaper published news relating to chit funds and the government swung into action.
Several experts are worried about new tactics of the chit fund firms. These funds are using newspaper and electronic media as vehicles to reach to common people. Each newspaper of chit fund companies carries advertisements relating to the activities in detail. Sales representatives are showing the newspaper to the rural people and trying to gain their confidence. Further, these newspapers act as a protection shield against any campaign relating to chit fund companies by other newspapers. Involvement of journalists with the chit fund firms through newspaper is a dangerous trend, stated a senior journalist of the state.
Government sources revealed that a group of NGOs is also engaged in chit fund activities. Recently, security personnel sealed the office of an NGO. However, security personnel failed to recover investors’ money. In an effort to curb such fraud schemes, the government has initiated several effective steps. Obviously, the steps are not adequate to control the chit funds. Any one can feel the growing influence of chit funds all over the state.
On the other hand, many people acknowledge that if the state government can properly manage and control chit funds, these firms may play an important role in the financial development of people. A website mentioned that chit funds in Kerala helped people to access credit easily. Even there exists a chit fund called Kerala State Financial Enterprise under the Kerala Government. Although the rate is not alarming, yet misuse of such funds happens. In Tripura, chit funds have yet to play a constructive role. Unless and until people become more conscious about the possibility of financial loss, the problem will persists.
