Indian Madoffs & Investment Schemes

All of you know about The Madoff Scandal, in which one of the Wall street’s top Investment firms – The Bernard L. Madoff Investment securities was exposed as a giant Ponzi operation.

Ponzi schemes are named after 20th century US fraudster Charles Ponzi where cash from new customers is used to meet demand from existing ones. This is completely illegal. You can not show other investors money as a profit to pay existing investors.

Remember, “Investment Schemes that sound too good to be true are fast mushrooming.”

If someone offer you more than double your money by investing in retail, car leasing, resorts and cruise segments than beware. These schemes which offer you high return can be Ponzi.

Today we will discuss about such 3 suspicious Indian Schemes.

01) Shree Om Sainath

02) City Group

03) Metro Cruise

All of these 2 schemes are right now offering their members un believably high return on Investments.

- With Shree Om Sainath, you can place an order for a Brand new Tata Indica for just Rs.1.25 Lakh. You will get your Tata Indica only after five years, but until then, the company will pay you Rs.3,453 every month.

Rs.3453 every month for five years for a deposit of Rs. 1.25 Lakh means 33% Per Annum fixed Guaranteed return on Investment and your Investment will almost double after five years and on the top of that a Brand New Tata Indica Car.

Now I really surprise that what justifies this much of return? I mean where Company is investing from which it will get this much of guaranteed return?….

- City Group, Here is another real time mouth watering deal. For a deposit of Rs.1.39 Lakh, City Group which has a dozen or so businesses, including City Limousines, City Realcom and City Hospitalities will give you Rs.8,800 every month for five years.

Now Rs.8800 return every month on Rs.1.39 lakh deposit is 76% Guaranteed return per Annum…!!! And it means that your Investment will grow 3.8 times in 5 years and that is 3800% profit in 5 years…!!!

I really surprise that where city Group is Investing this much amount of Money which will generate 75% return for its Investors… ohh sorry Prime Members of the scheme…!!!

If City Group can quadruplet (4 times) your money in just five years than why it doesn’t save itself during the time of recession?

- Metro Cruise’s Retail Pan – This Plan offers even higher return than the above two Plans. Invest Rs.1.05 Lakh and collect Rs.12,517 every month for five years.

Ohh my God…!!! 12% return per Month… and that is 143% return per Annum….!!!!!!!

Wow…. It’s really amazing. The only thing surprises me is that, Why people don’t want to accept the reality that this type of returns simply never exists.

Anyway… Back to the main topic…. If anyone of you Invest in any of the above schemes than please let me know that how much you made after 3-5 years?

I think these types of schemes should be closely monitored and Investigated by RBI (Reserve Bank of India) and SEBI. I think SEBI and RBI should take appropriate investigations about these type of ‘Guaranteed High Return Schemes’.