Companies that collect deposits in Bengal are a jittery lot.
Alerted by the fall of Saradha Group, investors are fast turning up at these companies demanding premature redemption.
Sporadic incidences of violence and demonstration against a number of scheme owners are also reported from across the State.
Trend reversal
The trend reversal has forced numerous deposit taking companies to come out with prominent advertisements in major dailies, assuring safety of investments.
Rose Valley – one of the largest deposit taking company of the region – issued a series of advertisements claiming itself to be an “asset-based, economically proficient” company.
The group’s offices in the East Midnapore district were recently ransacked as Rose Valley issued “I owe you” receipts to customers demanding redemption.
According to Gautam Kundu, Chairman of Rose Valley Group, refund was delayed due to “overcrowding”. The company claims to be refunding money to investors demanding redemption.
A group outfit was recently slapped Rs 1-crore fine by the SEBI, for failure to provide some details to the market regulator. The other groups which came out with advertisements include MPS Greenery Developers Ltd; Aspen Projects India; Vibgyor Group; and Sumangal.
SEBI previously held MPS responsible for raising money under collective investment schemes, without its permission, and issued a wind up notice. In its advertisement MPS claimed to have been authorised by the court to operate CIS scheme.
Aspen Projects India too came up with advertisements after its office in Burdwan district was attacked.
Vibgyor Group claims that its outfit Vibgyor Gold Ltd was an asset-based company and it was collecting deposits under the Companies Acceptance Deposit Rule, 1975. Sumangal Industries Ltd too has an advertisement where it claims that it is involved in potato trade and is not a money collecting company. The company is recently barred by SEBI from raising funds through flexi-potato purchase scheme.
Complaints received
Interestingly, the Union Ministry of Company Affairs (MCA) has received complaints against most of the companies for indulging in Ponzi/MLM (multi-level marketing) schemes. According to the list tabled by Sachin Pilot, Minister of State, complaints were received against 72 such companies from West Bengal.