Andhra Pradesh government is all set to act tough on economic offences particularly to curb private chit funds and financial institutions. The state government has come to this decision after it found irregularities in Agri Gold group of companies. The government is currently taking legal opinion in attaching the 16000 acres of land belonging to the company in seven states.
The company has 30 lakh subscribers and collected huge amounts of deposits from them. Currently the company has Rs 500 crore deposits in commercial banks and Rs 70 crore in non commercial banks. There are complaints in few districts recently that the company is defaulting in the payments to its customers after the maturity date.
On the other side, government is thinking on the lines of tightening nose of private chit fund companies and finance institutions in the state. The government will bring the act making compulsory registration of any chit fund and finance institutions. The Act will also allow government to attach the properties in the lines of Enforcement Directorate (ED) of any chit fund or finance institution if it will be indulged irregularities.
