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Beware of Ponzi Schemes

Author: Rubina Begam
by Rubina Begam
Posted: Jul 05, 2014

As long as Greed is stronger than Compassion, There will always be Suffering. – Rusty EricBuying home is a dream for many. People take risk by way of getting loan from money lenders, at exorbitant interest rates to get a home of their own. Though home is always an asset, and real estate gives good return on investment be careful while choosing how you are funding. One of major ways people are getting cheated is Ponzi schemes. Ponzi scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors. Operators of Ponzi schemes entice new investors by offering higher returns than other investments. Since the underlying business does not generate super normal profit, the perpetuation of the high returns requires an ever-increasing flow of money from new investors to sustain the scheme.

Recently CBI unearths Ponzi scheme operated by a Delhi real estate company to the tune of Rs 45,000 cr. Central Bureau of Investigation (CBI) has recovered documents from the premises of Delhi—based real estate company, PACL also known as 'Pearls' and its sister company PGF, showing proof that the companies cheated crores of innocent people.

CBI registered a case, against PGF director Nirmal Singh Bhangoo and PACL director Sukhdev Singh besides six other directors of the companies. The groups had allegedly raised investments from over five crore gullible investors through collective investment scheme under the garb of sale and development of agricultural land. Ponzi scheme has cheated many people who invested their money on Property in Bangalore, Delhi, Property in Chennai, Mumbai and other major cities in India.

During the searches in last few days, CBI recovered documents of benami properties worth crores of rupees in India and abroad.

The investments made by the company in a hotel in Gold Coast (Australia) have also come under the CBI's scanner. Irrespective the action taken by CBI, the fate of crores of people who put money in the ponzi scheme is not clear. Instead of being prey to this ponzi scheme, invest wisely in legitimate properties.

About the Author

Realtycompass.com is a real estate portal offering comprehensive listing of residential projects across 12 cities. Flats for sale in Chennai at realtycompass.

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Author: Rubina Begam

Rubina Begam

Member since: Jun 17, 2014
Published articles: 16

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