MP HC asks CBI to probe chit fund companies
Madhya Pradesh High Court`s Gwalior Bench on Tuesday directed the CBI to probe chit fund companies which were allegedly misappropriating crores of rupees.
Gwalior: Madhya Pradesh High Court`s Gwalior
Bench on Tuesday directed the CBI to probe chit fund companies
which were allegedly misappropriating crores of rupees.
The directives in this regard were issued by Justice S K
Gangele and Justice Sheel Nagu on a PIL filed by a social
Dharamveer highlighted in his petition that the business
of chit fund companies was spread across different states, and
the Gwalior police was not competent to probe such a vast
He demanded that the probe into their activities be
handed over to any agency which has pan-India presence and is
capable of probing in any part of the country following which
the bench directed CBI to investigate the matter.
The PIL was filed in September 2010 and during the last
hearing, the Additional Advocate General (AAG) MPS Raghuwanshi
also agreed with the petitioner to hand over the probe to the
CBI in view of its large dimensions.
In the last two months, Gwalior district administration
raided and sealed 34 chit fund companies` offices for duping
people by promising to double their money in a short span of