The NGO has also taken legal action against a number of fake financial companies and put pressure on the Assam government and the administration to restrict their illegal business activities.

Following the initiatives, the Assam Government in the last Assembly session was compelled to declare 23 such companies as fake out of 109 dubious companies. In his speech, Tarun Gogoi at the Chief Ministers’ Conference on Internal Security at Vigyan Bhawan, New Delhi on April 16, 2012, mentioned that another economic offence that has duped thousands of gullible citizens is the proliferation of dubious Non-Banking Financial Companies (NBFCs) which have misappropriated huge sums of money raised from the public.

According to CLPF, to supervise such cases, a Special Investigation Team (SIT) has been constituted. During last one year 107 cases involving 62 companies have been detected leading to arrest of 99 persons, recovery of Rs 65 lakh in cash, attachment of immovable properties worth Rs 16 crore and freezing of 70 bank accounts both in and outside the state.

Quoting reports, Ajoy Hazarika of the CLPF said that Non Banking Financial Companies should give at least three months public notice prior to the date of closure of any of its branches or offices in, at least, one leading national news paper and a leading local (covering the place of branch /office) vernacular language newspaper indicating therein the purpose and arrangements being made to service the depositors.

CLPF has urged consumers to be alert about dubious companies soliciting investments with the promise of very high returns. Many of these companies do not have any government approval, and quite frequently have siphoned off huge funds by sudden closures duping the investors.