TDP president N. Chandrababu Naidu on Friday wrote to Chief Minister N. Kiran Kumar Reddy requesting him to take stern action against the organizers of bogus finance companies by ordering Special Task Force to probe into their fraudulent activities. He also urged the Chief Minister to bring suitable regulations to curb floating of bogus companies, which were duping the innocent public.
The former chief minister responded to a representation from P. Ravi Kumar Chowdary, Telugu Yuvatha president of S.P. Nellore district. In his letter, Naidu has stated that of late, many bogus finance companies and multilevel marketing agencies are mushrooming in the State, especially in Nellore and Prakasam districts and they have been collecting money from the gullible public by luring them with very high rate of returns by way of interests, dividend, bonus and so on within a short time.
He also stated that Secured Investment Marketing Services (SIMS) of Visakhapatnam cheated the poor people in East Godavari, West Godavari, Visakhapatnam and similarly N. Mart cheated the people in Nellore and Prakasam districts. These companies are reportedly carrying out their nefarious operations without taking permission either from the RBI or the State Government. After winning confidence of the local people for some time and recruiting agents and staff by paying high commissions and salaries, these companies are collecting hundreds of crores of rupees from the public in the name of attractive investment schemes, he stated.
After collecting huge amounts, these so-called companies were downing shutters and the directors are running away with public money. Most of the gullible investors cheated by these bogus companies belong to poor and lower middle class families, who have invested their hard-earned savings with a hope of getting high returns.
Having left with no other alternative of getting back their life-time savings, some of them have been even committing suicides, he added. As there was no effective mechanism to check the activities of these bogus companies, their frauds are surfacing only after much damage was done, he added.
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