• Chitfund fraud

Hello everyone, 
my mom had entered into local chitfund with a woman in chennai. She has been doing it for the past 10 yrs. She was not registered. on 15/10/2014 she ran away but her husband and son got arrested the next day. My mom had never taken any sign of the woman while making the payments. The amount is 1,50,000 which we paid her in about 20 months. There are about 40 more people. None of them have any reciepts or signatures. Few victims had given money to her for interest and they have stamp paper and bounced cheque. The total amount payable to all victim is close to 1.5 cr. We suspect she has properties in chennai. But we are unsure. Kindly suggest us:
1)  what can we do in this situation to recover our money? Even if half money is recovered we will be satisfied.
2) is there any chance of recovering our money?
3) is there any option other than legal option?
Asked 3 years ago in Criminal Law from Chennai, Tamil Nadu
1. Have the husband and son been released on bail by the court? Since they were arrested it shows that police is taking the matter seriously.

2. The legal remedy available to victims is to move to court and file a case for recovery of money against her. If you suspect she has some properties in Chennai then move to court without any further delay and seek a stay against the sale of those properties by her. In the event you succeed in the court her properties may be sold and the sale proceeds appropriated towards the recovery of amount due to her victims. If she succeeds in selling the same you may not get anything.

3. The above being said, your mother and all other alleged victims will have to prove that they paid money to this woman. The stamp paper subject to its contents and the bounced cheque may be of some help.
Ashish Davessar
Advocate, Jaipur
23086 Answers
639 Consultations

5.0 on 5.0

 1. Since the Police is investigating and two of her family has been arrested , find out from the police what details they have.
2. if they caught the two in custody the property and bank accounts can be sealed and seized,and if they are charged under economic offences and Tamilnadu chitfund act 1961, surely police can trace the lady through them.
3. From your side make sure that the case is strong and follow it up with the police, as there is all the chances of the parties influence the police.
4. Since you do not have any documents to prove that it is difficult to file an recovery suit against them.
5. How was the payment made was it cash or in cheque, if the payments made by cheque you have some proof of the remittance which will help you in a civil suit.
6. If the criminal case is taken ahead , there is chance of the money can be recovered.
7.There is no safe option other than legal option and it is not advisable to take the law in your hand,
Thresiamma G. Mathew
Advocate, Mumbai
1515 Answers
139 Consultations

5.0 on 5.0

1. If the two accused are in custody, and investigation is going on, there is a chance of the lady getting arrested too.
2. Police can seize and freeze their bank accounts, attach their property .
3. The statements of the victims hold important evidence  even if there are no documents to show an agreement between the lady and your mom.
4. recovery can be done in a civil court , The FIR and other investigation details come helpful in civil matter.
5. It will be advisable all the victims together move to court , as some of them are having the papers to show the payments, it will help in the court.Get a civil lawyer and show him/her the available documents and details of the payments, FIR etc and proceed further.
6. It is necessary to get an attachment order on her existing property as early as possible so that she does not dispose them of before a step taken in the court.
S J Mathew
Advocate, Mumbai
2263 Answers
110 Consultations

5.0 on 5.0

1. The investigation is on. You shall have to wait for the investigation & if the main accused gets arrested and she admits having received the said amount from you then she might give a plan to refund the amount,

2. No. I find there is no chance for your getting back any amount if she herself does not admit since you have no evidence of such unauthorised investment,

3.Persuasion is the only remedy left when legal remedy fails.
Krishna Kishore Ganguly
Advocate, Kolkata
18730 Answers
452 Consultations

5.0 on 5.0

investigation is in process victims are arrested too . you may wait if arrest of all acused is possible for remedy to come. it has become necessary to get attachment order from competant court.
Brijendra Kumar Vishwakarma
Advocate, Kanpur
117 Answers

4.5 on 5.0

1. Did they file for bail subsequent to the rejection of their initial bail plea? Whenever they file for bail you and other victims can field your own lawyer to oppose their bail. These pressure tactics may eventually work  and this woman may come out of her pigeon hole and refund the entire money to the victims.

2. To recover your money you have to go through the process of law which would entail engaging the services of a lawyer.

3. If you do not possess evidence required to prove your case your case will not stand in a court of law.

4. Meet a lawyer and show him all the evidence in your possession so that he may enlighten you about the legal credibility thereof.
Ashish Davessar
Advocate, Jaipur
23086 Answers
639 Consultations

5.0 on 5.0

1. Why in the past?

2. Even there is the infamous case of 'Sharda' Cheat Fund in West Bengal wherein around Rs.20,000 Crores collected from poorest people of west Bengal has been swindled by tye cheat fund with the help of infuelcial people,

3. There are few Enquiry Commission & CBI,CID enquiries but hardly of any result,

4. The money has been swindled out already. So, how can the investors having documents be refunded, leave apart the cases of investors who have no evidence of investment?
Krishna Kishore Ganguly
Advocate, Kolkata
18730 Answers
452 Consultations

5.0 on 5.0

you have no direct evidence of giving money but there is circumstantial evidence to show that they were engaged on money lending business or carry on chit fund company. you should contact with all 40 persons and file a criminal case jointly, collect all evidence which will show that they were making some payments or invest their money. all these evidence shall have capacity to prove their source of income by chiting or deceiving then burden of proof shall shift upon them to prove genuine source of income and it shall not be prove by them. 

don't worry that you have no document or receipt in support of giving money but circumstantial evidence is enough to establish this case. there is series of judgments pronounced on circumstantial evidence only. file a case and you'll get judgment in your favour.
Shivendra Pratap Singh
Advocate, Lucknow
5066 Answers
78 Consultations

4.9 on 5.0

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