Centre will crack whip on chit fund: Pilot

The central government has received complaints about political parties getting involved in running chit funds but no proof has been found so far in this regard, Union Minister of State for Corporate Affairs Sachin Pilot said on Sunday. Pilot was answering questions on the sidelines of a seminar in Kolkata, organised by Merchants Chamber of Commerce. "

"We have got complaints from states like West Bengal, Sikkim, Maharastra, and Madhya Pradesh that various political parties are involved in the chit fund business, but we do not have any proof to corroborate with the complaint. If we receive a specific complaint, we can investigate the matter", Pilot said.

CPM state secretariat member and former Left Front minister Gautam Dev last week alleged that the government was patronising chit funds in the state. An amount of Rs 15,000 crore has been amassed by the companies by raising money from small investors, according to reports.

About six months back, Trinamool Congress MP Somen Mitra wrote to the Prime Minister's Office as well as the Finance Ministry requesting them to take action against these erring firms.

Pilot also said that the new Company's Bill 2012 that will be placed in the winter session of Parliament will help regulate and monitor the various agencies that run chit funds."

"Various agencies provide registration to the chit fund companies as government does not have a proper regulatory mechanism. By bringing this Bill, the government will fix the agency which will give registration to the chit fund compan"es", he said further.

The rules of the new Company's Act framed under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, clearly state that "promoters of money circulation schemes will be personally responsible even if such schemes are run by companies registered under the Companies Act, 1956 or other business entities carrying limited liabili"y."

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