Ignored for Years, Chit-Fund Scam Victims Disrupt Modi Rally in Chittorgarh
Chittorgarh, Rajasthan: Wearing BJP merchandise, BJP IT cell sashes, 'main bhi chowkidar' caps and Modi masks, thousands of chit fund scam victims, after careful planning, reached Prime Minister Narendra Modi's rally in Chittorgarh on Sunday. They blended with the crowd and did not attract even the slightest of suspicion.
They resembled BJP coordinators who instruct ‘paid’ crowds to cheer for Modi. Their dress code made coordination effortless.
Despite tight security at the rally, the protestors managed to sneak in placards, neatly folded into their wallets. These placards registered their protest against the Modi government for not acting on a 2016 Supreme Court order directing the Securities and Exchange Board of India (SEBI) to refund the PACL investors within six months.
Modi's look-alike amongst the crowd at the rally in Chittorgarh. Credit: Shruti Jain
As Modi began his speech, the protestors simply held up placards stating, "Vote hamara, mudda hamara; PACL ka bhugtaan, haq hamara" (Our vote, our issue; PACL refund is our right). The police took three protest0rs into custody for knowingly constituting an assembly of five or more persons likely to cause a disturbance to public peace (section 151 of the Indian Penal Code). Thousands of protestors thronged the city police station in support.
“C.B. Yadav, Naval Kishore and Vinod Yadav were taken into custody for protesting at the PM’s rally, but they were later granted bail,” Sanjay, a constable at the Kotwali police station in Chittorgarh told The Wire.
Thousands of protestors raised placards at Modi's rally. Credit: Shruti Jain
The protestors demanded urgent action over the chit fund scam and called for the government not to sideline the matter with propaganda. "It's our sincere request to both the national parties – the BJP and Congress – to deliver justice to over six crore victims of the PACL chit fund scam and around 18 crore victims of other chit fund scams. Otherwise, we will not let them hold any public rally," C.B. Yadav, one of the protestors taken into the custody, told The Wire.
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"The government shouldn't forget that voters' issues are of supreme importance. They cannot be hidden by talking about Pakistan, martyred soldiers or dividing people over Hindu-Muslim tensions," he added.
What is PACL scam?
PACL India Limited is a public limited company incorporated under the Companies Act, 1956. It sold agricultural land to customers through various plans. Over 6 crore families who invested in the company, expecting higher returns, have still not been refunded. The scam is estimated to have cost investors Rs 50,000 crore.
The Supreme Court, in its 2016 judgment, said:
The amount, which is lying in the bank accounts of the company [PACL] and other cash belonging to the company shall be released in favour of SEBI so that it can be used either for disbursement in favour of the investors or for incurring necessary expenditure.
The SEBI was ordered to constitute a committee to dispose land purchased by the PACL so that proceeds could be disbursed to the investors.
Chit fund scam victims protesting at Modi's rally in Chittorgarh. Credit: Shruti Jain
“The work, with regard to disposal of the land and disbursement of the proceeds to the investors, be completed as soon as possible and preferably within six months from today,” the court said.
Despite this, the Modi government took no concrete steps to act upon the apex court's directions.
In February this year, the chit fund victims also protested at the parliament street in the national capital. However, their voices remain unheard. Unwilling to give up, the protestors planned to publicly raise the issue at the prime minister's rally.
Suffering of the investors and agents
Mukesh Kumar Saini, a former agent of the PACL, feels guilty that he convinced thousands of people – including his relatives – to invest in the chit fund company. To redeem himself, he’s been actively involved with the All India Safety Organisation (AISO), an umbrella body demanding the reimbursement of investors’ money.
Saini says the company was in good health for several years and was even listed as one of the top 500 companies in the 2005 edition of Business World magazine. “Associated with the Pearls group, the company had a good reputation. We never had any difficulty in convincing customers to invest. Several of us had invested our money too.”
Mukesh Saini along with other agents who worked with PACL. Credit: Shruti Jain
After the company was sealed, lakhs of agents were left unemployed. Even today, the agents are seen as ‘frauds’ by those who invested in the scheme due to their assurance.
“If any of investors meet us anywhere, they always mention that we assured them their money would be safe. Now, I think multiple times before going to any public place,” said Saini.
Ram Pyari holding her PACL investment certificates. Credit: Shruti Jain
Ram Pyari (60) invested Rs 60,000 in three plans of the company with a maturity period of six, seven and ten years. She thought it would help her lead an independent life during old age. However, today, she needs to urgently undergo a cataract surgery, but has no buffer to pay for it.
“Who knew that even the money I had would be lost? The agents assured me that nothing will happen to my money. Now they say the company was fraudulent," said Pyari.
"Why doesn’t the government work proactively? Why do they enter the scene only after the damage has been done? Isn’t it their duty to prevent frauds before they happen?” she added.
Along with Pyari, her family also invested in the company. In total, their investments add up to approximately Rs 3 lakh. “We withdrew the money invested in the post office scheme and put it in the chit fund scheme. See what has happened. I tell every second person I meet to never invest in such schemes,” said Chandra Kanta, Pyari’s daughter-in-law.
Ram Pyari's family also invested in the PACL chit fund. Credit: Shruti Jain
Bhawarlal (45) also has a similar story. He first invested Rs 300 in three plans of the company and subsequently receiving a higher return. He then decided to invest a larger amount, of approximately Rs 3 lakh, in various plans.
With their life savings locked in the scheme now, his family has no means to survive.
This article went live on April twenty-second, two thousand nineteen, at zero minutes past four in the afternoon.The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.
