The Serious Fraud Investigation Office (SPIO), which investigates ponzi schemes, multi-level marketing, and chit fund activities, has been assigned eight cases involving 84 companies in the last three years, said minister of state for corporate affairs Rao Inderjit Singh in the Rajya Sabha on Tuesday.
‘Although the term “Ponzi Schemes” is not defined under the Companies Act, 2013, Ministry of Corporate Affairs (MCA) has ordered and assigned investigation into the affairs of the numbers of companies which are allegedly involved in Ponzi/Multi-Level Marketing/Chit Fund Activities.’ Singh said in response to BJP MP Mahesh Poddar’s question.
‘During the last three years, eight cases involving 84 companies have been assigned to Serious Fraud Investigation Office (SFIO),’ he added.
MCA’s initiatives and measures were also stated by MoS Singh. An Investors Education and Fund Protection initiative, established under the Companies Act of 2013, partners with Partner Institutes and organises Investor Awareness Programs across India. ‘The primary focus of these programmes is to make the participants aware of Do’s and Don’ts while making any Investment and to sensitize them about various fraudulent and Ponzi Schemes,’ he added.
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