The Crime Branch ADGP appealed to the public to be extremely vigilant as they could become victims of financial fraud by investing in such illegal financial institutions. The warning comes in the context of increasing cases related to financial fraud in the state.
Details of illegal financial institutions are given on the website of Kerala Police. The link https://keralapolice.gov.in/page/announcements will provide the details of fraud firms. At the same time, the report of the Kerala Police also points out that illegal money transfer institutions are operating in most of the districts of the state.
At the same time, only about 2,000 of the more than 10,000 money transfer companies in the country have submitted sufficient documents to the authorities. Nidhi companies can only operate after obtaining the approval of the Registrar of Companies. Nidhi companies cannot carry out chitti, leasing finance and hire purchase as non-banking financial institutions (NBFCs) do. Similarly investment in shares in other companies is also not allowed.
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Meanwhile, according to the list released by the police, the authorized private money transfer institutions in the state are centered in Thrissur district. There are 72 fraudulent and fake financial institutions here. Wayanad is the district where there are few such illegal establishments. Here only three are operating illegally. Ernakulam 18, Thiruvananthapuram 14, Kozhikode 11, Kollam 8 and Alappuzha 7 also have illegal financial institutions in various districts.
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