‘Cheat fund’ business thriving

After money chain companies swindled over `1,000 crore from the public in the state, now it is the turn of chit fund companies to make some quick buck.


Crime Branch Economic Offences Wing, which is  investigating money chain cases, has observed that several chit fund companies have started operation in the state without licence and permit.


According to the Crime Branch, many illegal chit fund companies are targeting people in Ernakulam and neighbouring districts.


“Quite surprisingly, many victims of money  chain cases are investing their money with the kuri firms without verifying their  authenticity. There are about 15 such fake financial organisations operating in Thrissur and Ernakulam districts. people must wisely invest money without falling prey to the promises of the agents of the companies,” Crime Branch official said.


These companies have also recruited several women agents with a view to targeting the women customers.


“They feel that women can be easily lured into the promises of huge returns for investments. Apart from two or three companies, a majority of the kuri companies are illegal,” the Crime Branch said.






The investigation agency has registered a total of 620 money chain cases from Ernakulam, Thrissur, Palakkad, Idukki and Kottayam districts. The majority of the cases was reported in Thrissur district with more than 400 cases to its credit. In Kochi and the rural parts of the district a total of 25 cases have been reported.


“Thrissur had such a huge number of cases because Nano Excel case was reported in the district. The total amount cheated by these companies would cross `500 crore in Ernakulam district alone,” Crime Branch official said.


There were 18 money chain companies operating in Ernakulam. The Crime Branch is also keeping a tab on several compaines that are operating on the lines of Nano Excel and Tycoon.


“A total of 487 cases were registered against Nano Excel and 133 cases against other money chain cases. Even though we have not received any complaint against chit fund companies, we are closely monitoring their operations,” the official said.