162 chit funds looted investors of Rs 40,000 crore, says BJP MP Kirit Somaiya

BJP MP Kirit Somaiya sought stringent action by the Maharashtra government today against 162 'bogus' chit fund companies, which he claimed, had duped investors in the state to the tune of Rs 40,000 crore.

"I have a list compiled by Securities Exchange Board of India (SEBI) which states that 162 'bogus' chit fund companies duped investors in the state to the tune of Rs 40,000 crore," Somaiya told reporters here after submitting a letter to Maharashtra Chief Minister Devendra Fadnavis.

"The CM has asked the additional chief secretary of the home department to probe the issue. In all, these companies collected Rs 1 lakh crore in India, out of which Rs 40,000 crore was collected from investors in Maharashtra," he said.

Major companies in the list include Samrudh Jivan, Sai Prasad, Twinkle Group, Citrus Resort Group, Scenic Land Group and Mirah Pvt Ltd Group, Somaiya said. The SEBI has already banned Samrudh Jivan and Sai Prasad, he said.

Maharashtra is fast becoming the capital of chit fund scams in the country and if the government fails to take action, more people would suffer, he said.