Muscat: Around 25 expatriates in Muscat claim they have lost at least OMR15,000 from a chit fund (personal savings scheme) as the man running the fund has gone missing.
According to investors, the administrator has been missing since August 8 and they can’t get answers to where their collective savings of OMR15,000 are.
A chit fund is an agreement where a set number of people contribute a sum of money with one member of the group receiving the total amount collected at a set time.
It is widely used in India as a means of easy credit.
“I lost OMR1,000. Many others have also suffered a loss of similar amount,” one of the victims said.
As it is illegal to run such funds in Oman, the victims are left with no other options than forget about the money.
“It was all on personal trust. There was no paperwork as it is illegal to operate such fund systems in Oman,” the victim said.
The victims added that they are clueless about how to retrieve the money they have invested.
“We have not approached anybody so far. We know we can’t,” one victim added.
Meanwhile, a legal advisor said that as operating chit funds are illegal in Oman, the victims stand no chance to bring the accused to book.
“In the past many such cases have surfaced in Oman. However, recently, we have not come across such cases. As it is illegal, people will remain mum,” the legal advisor added.