I see many companies offering attractive returns on moneys collected by them (they say that the money invested will double in 5 years to be exact).
One such company's representatives persuaded me to make an investment decision and hence i did some due diligence work on the Company on the MCA -21 portal.
I was shocked to find that in the Auditors Report, the Auditor has stated that the Company has not accepted any deposits under section 58A of the Companies Act, 1956 ( I personally know some people who have been investing in that company for about 3 years as a Recurring Deposit of Rs 1000 per month).
On scrutiny of all the available data of the Company in the MCA -21 site, I found that the Company in its financial statements, never expressed its intention to accept public deposits.
Further the reason why the Company became popular among the people was that the commission it offered to one who collected the deposit.
Now let me ask you one thing, what is the fate of those who invested in the Company ?
Is there any competent authority to whom an official complaint can be lodged so as to protect the investors interest before it becomes a case of embezzlement of public money ?
CAclubindia
