VIJAYAWADA: The searches initiated at 18 units of chit fund companies across the State three days back, concluded on Thursday with seizing of all the records and material relevant for the proceedings under the Chit Fund Act, 1982.
Officials said evidence of diversion of funds, non-payment of GST, not giving security under Section 31 was collected. “In view of the above, all the Deputy Registrars of Chits in the State are directed to take necessary action, including penal action on the above noticed irregularities,’’ the officials said.
The inspection by the officials of the Stamps and Registration Department in the units of various chit fund companies across the State started on Tuesday after receiving complaints of malpractice and violation of the RBI Act and the Chit Funds Act.
Raids on chit fund firms have been carried out for the third time since October. It may be recalled that searches were conducted on October 21 at 12 firms and at five companies on October 31.
During the preliminary scrutiny of the firms’ balance sheets for 2021-22, the officials have observed trends of diversion of funds. The officials also found that the firms were not paying GST on penalties collected from subscribers for late payment.