On December 23, 2005, the officials of Pan Islamic Multipurpose Co-operative Society (PMC) at Mohammadia Housing Society in Mohammadpur went into hiding with more than Tk 50 lakh they collected from around 20,000 members.

"I became a member of PMC in July last year and gave them all the money I saved from my daily earning," said Ruhul Kuddus, a beggar at Mohammadia Housing Society.

"I did not hesitate to deposit the money as the PMC officials assured me of attractive return against my deposit," he said. "Now I have lost everything."

Three years ago, PMC introduced several savings schemes with a commitment to give the members double the amount they deposit, after a period of three years.

"It also gave loans to the interested depositors on soft terms. Finding all these proposals very lucrative, over 20,000 men and women became its members," said Lutfor Rahman, another victim from Katasur in Mohammadpur.

Everything was going on smoothly. The problem began when the depositors started coming to the PMC office on completion of three years for collecting the 'double amount' as committed by the PMC officials.

"One fine morning we found the PMC office under lock and key," said another victim. "All the officials of the fake organisation fled with the deposited money."

The depositors went to police and urged them to arrest the culprits. "We filed a case against the PMC," said Nusrat Ali, a victim from Adabor.

The police so far arrested three staff of PMC, Faysal, Sohel and Russell.

"The depositors being deprived of loans complained against the organisation and we arrested the three," said Shafiqul Islam, second officer of Adabor Police Station.

On December 25, 2005, a similar incident occurred at Mir Hazirbagh in Demra.

Hundreds of people took to the street and blocked the Jatrabari-Sayedabad road demanding the arrest of a man, a so-called journalist, who took money from these people assuring them of giving returns with high interest.

The accused, Giasuddin Ahmed, runs three newspapers, locals said.

"Giasuddin opened an NGO named 'Property Development' and promised us plots and apartments. We went to his office on that day (Dec 25) to receive our money and found the office locked," said Rasul Miah, a victim from Mir Hazirbagh.

Iqbal Hossain, the deputy commissioner (Demra Zone) of Dhaka Metropolitan Police said, "I am well concerned about the matter and have ordered the officer-in-charge (OC) of Demra Police Station to take proper initiatives."

But none of the fake organisation has been arrested yet, sources at Demra PS said.

Alhaj Robiul Islam, president of Mohammadpur Welfare Association, said, "NGO Affairs Bureau is the only authority to monitor and check the fake loan giving organisations. Why it does not take action against them?"

"To stop other fake savings and loan giving organisations' illegal activities, law enforcement agencies should take stern and immediate action," said Serajul Islam, secretary of Baitul Wahab Jame Masjid in Mohammadpur.

When contacted, a high official of NGO Affairs Bureau requesting anonymity said, "Prospective depositors should justify the NGO's legality before depositing money, otherwise we are not responsible if anyone is deceived."

He added that they are trying to stop this illegal practice by regular monitoring.

DMP Commissioner SM Mizanur Rahman however expressed surprise hearing the names of these fake loan giving organisations as he never heard them before.

Asked if they have taken any precautionary step in other areas, he said, "If NGO Affairs Bureau informs us about these fake organisations, we will go for action."