Kejriwal govt plans awareness ads against Ponzi schemes

The Delhi government is considering a suggestion to issue public awareness advertisements warning unsuspecting investors against ponzi schemes floated by unregulated firms in the city.

The discussions in the office of Home Minister Satyendar Jain started with a steady flow of complaints landing in at the Delhi secretariat against such allegedly fly-by-night operators.

“We may issue advertisements to alert the public against such firms. It will be in consumer interest,” said an official, adding that on Chief Secretary K K Sharma’s instructions all complaints against such firms are being sent to Delhi Police.

A Ponzi scheme is an investment scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for older investors by acquiring new investors.

Offices of Chief Minister Arvind Kejriwal and Jain have also got several complaints related to a particular company, which is headquartered in Janakpuri in west Delhi, but has opened half a dozen centres in city’s unauthorised colonies which house migrants from neighbouring states, sources said.

Prima facie the tainted company has no regulatory permission to operate as an online marketing company, said an official.

“One resident of Sangam Vihar, complained that he became a member of the company by paying Rs 14,000 and was given a pair of sports shoes and other articles which turned out to be fake,” said an investigator.

The complainant also approached the Delhi government’s Home Department to get his money back.

Under one scheme, a member who deposits Rs 10,000 to take membership is assured Rs 18,000 in return within 15 days if he makes three new members, he complained.
“A woman living in Sangam Vihar, who has not invested in the firm, came to us pleading to save the poor investors who were queuing up outside the online marketing firm’s office,” said an official.

Investigators said prima facie the firm against which the complaints are coming was involved in a fraud in Rajasthan, Haryana, Madhya Pradesh and Jharkhand.

“The directors of the company are known to float a new company every six months, after abruptly closing down operations of existing firms,” said an official.
 
Over 10,000 investors have allegedly been duped by the directors of the Janakpuri-based company which is feared to be dealing with over Rs 1,400 crore of public money, said a Delhi government official.

“An investigator told me that when he started doing a search on the antecedents of the directors of the ponzi firm, he stumbled upon the fact that they were on board of at least six dozen companies,” said a senior aide of the Chief Secretary.
DH News Service