BENGALURU: Unbelievable returns on investment, promised by companies peddling spurious schemes draw in investors who insist on taking part, ignoring those who warn them against it.It is not just one section of people either, investor profiles range from a roadside beggar to crorepatis. Legal experts and financial advisors say that these get-rich-quick schemes destroy the cautious mindset in people, leading them to bad investments.
Halal investment ponzi schemes encourage members to ‘donate’ their money and earn up to 30 per cent monthly as ‘profit’ for their donation. This attracts the religious, the migrants and those without documents to open bank accounts. “Many believe that depositing money in banks is only for the educated class and not for them,” says Neeraja Lakshman, a finance analyst.
Most investors are from the middle class or lower middle class. “In the IMA scam, there are shop owners, mango traders and others who do not file returns but use this money to invest in such schemes,” said Nagendra N, Assistant General Manager with Canara Bank.
Legal experts pointed out the need for immediate action by those who lost money. All documents relevant to the claim and the investment must be gathered and kept ready to be produced, they advise.“While police and other security agencies help victims get justice, their focus is not on maximizing financial recovery. Hence hiring an advocate is a good option,” say experts.