A Special Investigation Team (SIT) has been formed to probe the alleged financial irregularities at Amar Jyoti Finance Company, where hundreds of investors have claimed their funds, running into crores of rupees, are stuck. The development marks a major step in addressing public outcry over what appears to be one of the biggest regional finance scams in recent years.
According to initial reports, the finance company allegedly lured investors with promises of high returns on fixed deposits and recurring deposit schemes. Over the years, hundreds of residents across Bareilly and neighbouring districts deposited significant amounts in the firm, trusting its consistent marketing and long-standing presence in the region.
Company Offices Shut, Promoters Unreachable
Tensions escalated recently after the company’s offices reportedly shut down without notice, and several key officials, including the promoters, became untraceable. Panicked investors approached local police stations, prompting authorities to begin preliminary inquiries.
After mounting pressure from civil society groups and affected depositors, the administration has now handed over the case to an SIT. Officials stated that the SIT will have sweeping powers to examine financial records, seize assets, and make arrests if required.
“We have received multiple complaints from individuals claiming financial fraud. The SIT will thoroughly investigate the transactions, and action will be taken against all involved parties,” a senior district official said on the condition of anonymity.
Legal Proceedings
Legal experts believe the investigation could result in the invocation of provisions under the Indian Penal Code related to cheating, criminal breach of trust, and possibly the Banning of Unregulated Deposit Schemes Act, 2019. The Enforcement Directorate may also be roped in if money laundering is suspected.
Investors, many of them retirees and small traders, are now hoping that the SIT’s involvement will lead to faster recovery of their money and stricter regulation of non-banking financial companies (NBFCs) in the future.
The case has once again highlighted the urgent need for greater financial literacy and stricter monitoring of unregulated finance firms, especially in tier-2 and tier-3 cities where regulatory oversight remains limited.
About the Author – Anirudh Mittal is a B.Sc. LL.B. (Hons.) student at National Forensic Sciences University, Gandhinagar, with a keen interest in corporate law and tech-driven legal change.