Govt Orders SFIO Probe into Chit Fund Companies


New Delhi: In the wake of an alleged fraud involving thousands of crores by Kolkata-based Saradha group, the Centre ordered a Serious Fraud Investigation Office (SFIO) probe into suspected misuse of the public money by various chit fund companies.

A special task force has been set up under the SFIO to carry out all investigations into such companies, the corporate affairs ministry said in a statement. The decision was taken in view of a “larger public interest involved in these cases, and concerns regarding misuse/laundering by such companies of the ill-gotten wealth and the possibility that the promoters of these companies may strip these companies,” the ministry said.

The Enforcement Directorate (ED) has also registered a money laundering case to probe the allegations of financial irregularities by numerous depositors against it. The ED has registered a regular case under the provisions of the Prevention of Money Laundering Act (PMLA) at its Guwahati office as the Assam police has registered an FIR against the group after allegations were made by investors that they were duped of their hard earned money.

The probe follows raging public protest against alleged dumping of lakh of investors by Saradha group through their chit fund and other money-pooling activities in West Bengal.

Calcutta High Court, meanwhile, directed the West Bengal government to file an affidavit on the steps it has taken against the Saradha Group and also directed the company not make any financial transaction till further orders.

Taking up a PIL seeking a CBI investigation into the alleged multicrore chit fund scam by the Saradha Group, a Division Bench comprising Chief Justice J N Patel and Mr Justice Joymalyo Bagchi directed the state government to file the affidavit.

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Source: PTI