The Reserve Bank of India (RBI) cautioned that certain unauthorised individuals/companies were collecting public deposits by offering high returns. The regulator said this amounted to fraud and had to be investigated by the law enforcement agencies.
"It was reported that some individuals/firms/unincorporated associations of individuals (unincorporated bodies)/ marketing companies and companies engaged in money circulation schemes have been collecting money from the public by making tall promises of high returns, either through issue of advertisements or by sale of products. Some of these entities have reportedly vanished without repaying the money collected by them", the RBI said.
No non-banking finance corporations can accept public deposits apart from the ones who are permitted by RBI. The list of NBCs which are permitted to accept public deposits is available on the RBI website (http://rbi.org.in/scripts/BS_NBFCList.aspx).
"All complaints relating to unauthorised acceptance of money and running of money circulation schemes should be referred to the Economic Offences Wing of the State Governments concerned," the RBI said.
This is the statement of the Reserve Bank of India.
It may be recalled that several such companies like Pearls a.k.a. PACL, Agrigold have been mobilising deposits from various sections of people in the name of real estate. Recently, the CID of Andhra Pradesh filed a criminal case against KMJ Land Developers Ltd on the same charges. But in spite of written complaints and registered criminal cases against PACL and Agrigold, there is hardly any action against those companies.
It is high time, criminal proceedings are taken up against these companies. We hope the CID of Andhra Pradesh would initiate action against these fraudulent companies.