Several complaints of companies fleeing with investors’ money have been registered in and around Vadodara.

In light of this, the local Sub-Divisional Magistrate (SDM) office summoned the details of the investors on Sept 26 to return their investments amounting to ₹253.44 cr under the Gujarat Protection of Interest of Depositors (GPID) Act.

24,255 claims made by investors against six fraud companies

The GPID Act, introduced in 2003, includes a provision to seize the properties of fugitive companies and auction them off. This money is then paid off to the investors.

The 24,255 claims made by the investors amount to ₹253.44 cr, which have been levied on six fraudulent companies in Vadodara. It is noteworthy that since 2003, the city has registered the most number of claims in Gujarat.

The highest number of claims, 20,424, are made by investors of Sahara Credit Co-Op Soc Ltd.

Some of the companies and the amounts claimed from them:

How money flows in from the investors?

As per the numerous police complaints, these companies had issued ‘schemes’ in the market that promised high-interest rates.

They would assign their agents, who conned the investors by obtaining hefty investments from individuals.

As the maturity dates approached, the companies would either start ignoring the investors or just shut down their operations and offices and flee.

Even after the fraudsters were caught by the police, they would be released on bail, and the investors would not get their money back.

After the GPID Act was implemented, this money could be obtained through auctioning the fraudulent company’s registered properties. However, no investors in Gujarat were returned their money after the properties were auctioned off.

Following which, the Vadodara SDM office summoned the investors’ details on Sept 26 to return them their invested amounts under the GPID Act. The SDM office shall further submit a report of these cases to the court.

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