The government has ordered SFIO to conduct probe against 187 companies that had allegedly floated Ponzi, or multi-level marketing (MLM), schemes, Parliament was informed on Tuesday.
The government has ordered SFIO to conduct probe against 187 companies that had allegedly floated Ponzi, or multi-level marketing (MLM), schemes, Parliament was informed on Tuesday.
Ponzi schemes are fraudulent investment operations that lure investors with promise of high returns.
“The ministry has ordered investigation through SFIO under... the Companies Act into the affairs of 187 companies (as on April 13, 2016) against whom complaints had been received regarding alleged collection of funds through MLM/Ponzi activities in different states of country,” corporate affairs minister Arun Jaitley said in a written reply to the Rajya Sabha.
Of these 187 companies, probe has been completed against 83 while investigation is ‘under progress’ in the case of remaining companies. As per the list provided by the minister, complaints of financial fraud have been received against PACL, three Sai Group firms, eight entities related to the MPS Group, including MPS Greenery Developers, MPS Food Products, MPS Resorts and Hotels.
Besides, the list includes several entities connected to Chakra group firms like Chakra Infrastructure, Chakra Agrotech, Chakra Wealth Management Advisory, Chakra Hotel and Leisure.
