After West Bengal, Is Jharkhand next on the chit fund hit list?

West Bengal and neighbouring Odisha and Assam might be bearing the maximum brunt of the recent chit fund scams, but Jharkhand is not far behind. The deadly tentacles of the ponzi scheme have also gripped several people in the state. As usual, the people bearing the brunt are the lower middle class and the poor who trusted their life’s savings with these companies. There are several chit fund companies prominent in Jharkhand, among them Rose Valley Investments Limited who have set up shop in the industrial towns like Bokaro and Ranchi. Offices of these companies have mushroomed in these areas where it is alleged that they have collections of over 20 lakh rupees a month. [caption id=“attachment_825801” align=“alignleft” width=“380”]  Depositors in Jharkhand have also lost money in chit fund schemes just like the Saradha scam in West Bengal. PTI.[/caption] There are several factors for the success of the chit fund companies in this region. One, there is a good earning population from a large base service class. Two, the presence of coal and iron ore based heavy industries adds to the salaried population. Three, there is very little penetration of education among the population which makes them easy targets for these ponzi schemes. More than 150 chit fund companies are operating in the state, according to media reports. The state administration is very well aware of the situation but are yet to take any investigative action. ML Meena, IG, Bokaro said, “I know that there are several companies operating at the district level but we are taking action against them. I am not aware of the latest updates.” There are several families in the state who have lost all of their life’s savings much like the Saradha scam in West Bengal, a CNN-IBN investigation revealed. Chit fund agents who CNN-IBN spoke to also said that this was a vicious cycle because they have not got back their money either which also makes them vulnerable in these troubled waters. (With inputs from CNN-IBN)