Loan scams are becoming quite alarming, and the latest case from the Jangjir-Champa district of Chhattisgarh sent many women into distress. A fraudulent company called Flora Foundation Max allegedly cheated crores of money from women in the region claimed Local18. Here's a breakdown of the scam that has shaken the region.

How did the fraud happen?

The scam allegedly involved telling women that they would have a more promising future when they took a small business loan. The company wanted women to take loans of between ₹20,000 to ₹30,000 from different banks so they could become self-employed.

Ahilya Chauhan, from the Basantpur village, is one among several hundred who narrate how the company painted "golden dreams" of prosperity that vanished after collecting major amounts of money. The reports claim that the company agents shut shop and went underground after they collected around ₹10-11 crore from more than 50,000 women in the Jangjir-Champa and Korba districts.

The women have approached the Superintendent of Police in Jangjir demanding justice along with their money. They want the fraudulent company either to return the amount they invested or pay the installment every month as they promised.

Additional Superintendent of Police Umesh Kumar Kashyap confirmed the lodging of a complaint and assured that the matter is being investigated. Another complaint has been lodged in Korba as well, and efforts are underway there to track the culprits.