Sigma Autolink – Another fraud company

Sigma Autolink – Another fraud company

Even though investors today are a much more informed lot, there is still a lot to be done in terms of educating them on the merits of investing / not investing in certain types of companies.

A case has now been registered against Sigma Autolink Pvt Ltd, based in Aurora Towers, Pune, for cheating it’s investors during a span of 3 months last year.

This company had placed ads in leading newspapers in June ’07, asking the public to invest in their scheme. The idea was to purchase cars, rent them out and share the returns with those who had invested. For eg., in one of the schemes, if an individual invested Rs.1.55 lakh, he was assured a return of Rs.8,000 per month for 60 months, after which the car would either be transferred to the investor or he would get 20% of the investment back.

The case came to light when some investors failed to receive their monthly instalments, and found the Sigma Autolink office locked when they went to enquire. Ultimately this is just another ponzi / pyramid scheme, where the initial investors get paid from the money being poured in by those who come in later. As there is no substance behind all the talk, the scheme finally collapses, taking all on board, except of course, the promoters !!

Even in these highly “connected” times, where information dissemination has become easier, it seems surprising how easy it is to lure gullible investors to their doom, and one hopes that people shake themselves out of their slumber and do some thorough checking before parting with their hard earned money so easily.