Daijiworld Media Network - Bengaluru (RJP)
Bengaluru, Jul 30: Hundreds of financial scams have taken place in the state in the past decade and nearly 17.93 lac people are victims of this. Many who have suffered losses in these scams, mainly real estate and investment scams, have not approached the police, says Criminal Investment Department (CID).
Between 2006 and 2016, companies with dubious intent have swindled the innocent investors of Rs 3,273 crore. But the CID has so far managed to confiscate properties worth only Rs 594 crore in connection with these scams. The CID can confiscate movable and immovable properties of those accused in investment scams, under the Protection of Interest of Depositors in Financial Establishments Act of 2004. Economic offences wing of the CID deals with these cases.
Out of the 100 accused arrested in 422 cases, most are out on bail. A team of 40 CID officials is working exclusively on these cases, DGP H C Kishore Chandra said.
"The money can be returned to victims after the government auctions the confiscated properties," he said.
"Of about 6,500 investors cheated by real-estate firm Dreamz Infra, only 2,382 have approached the CID and submitted documents. Of the 5,315 investors swindled by TGS Constructions, only 2,750 have turned up with documents. In housing project Gruha Kalyan, only 814 of 2,220 investors have approached the CID," Kishore Chandra informed.
These companies follow a pattern. They are launched with pomp and fanfare with the participation of film stars and celebrities. They advertise widely with the promise of good returns on investments and flats and villas with extravagant features. While they keep their words for a few months to gain confidence of investors, later they start swindling, Kishore Chandra said.
"The owners and their aides get busy investing in sites, houses and stocks for themselves. They also produce films and splurge on gold, silver and swanky cars," he explained.
The CID has advised the investors and buyers to verify the credentials of firms with the Reserve Bank of India, the Security Exchange Bureau of India, Registrar of Companies, and the Registrar of Cooperative Societies. "People are increasingly losing their hard-earned money because they do not check the credentials of companies in which they invest," he said.
The CID is also planning to approach the state government with a proposal to help the agency to take stern and quick actions against the defrauding companies to safeguard the interest of investors.