Govt Orders SFIO Probe into Chit Fund Companies

The PIL was filed on 22 April by advocate Basabi Roy Chowdhury praying that a CBI investigation be ordered into all chit fund companies and the arrest of Trinamul Congress Rajya Sabha MP Kunal Ghosh alleging that the scam amounted to 30,000 crore. Ms Chowdhury's counsel Mr Subroto Mukhopadhyay, said that the petitioner has prayed for the arrest of Mr Ghosh, the Saradha Media's executive chairman alleging complicity in the scam. The petitioner prayed that all properties owned by Saradha Group be taken over by the government.

After being on the run for several days, Saradha Group Chief Sudipta Sen was arrested in Kashmir Valley two days ago and has been brought to Kolkata.

The corporate affairs ministry said that the Task Force will also coordinate with other law enforcement agencies and regulators wherever required, in its investigations.

Capital market regulator Securities and Exchange Board of India (Sebi) has already passed an order against one group entity, Saradha Realty India, asking it to wind up all collective investment schemes and refund the money collected from investors.

Besides, Sebi is also probing at least ten other Saradha entities for raising funds without the regulator's approval. The Income-Tax Department would also soon start its investigations into the activities of this group.

Without specifically naming Saradha group, the corporate affairs ministry said that it has “taken note of the misuse by certain chit fund companies who have raised huge sums of money from the public at large”.

The ministry said the probe has been ordered in view of a larger public interest involved in the issues, although the state governments are the appropriate authorities for regulation of such chit fund companies and schemes under the Chit Fund Act, 1982.

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