Govt Orders SFIO Probe into Chit Fund Companies

“... It has been decided by the ministry of corporate affairs to set up a Special Task Force in the SFIO to investigate the affairs of such companies. Accordingly, all investigations into such companies are being entrusted to SFIO with immediate effect,” it said.

The decision to order a probe came after a meeting taken by the Corporate Affairs Minister Sachin Pilot of the top ministry officials this morning, where activities of Saradha group and other money-pooling entities were discussed.

Besides Saradha group, the meeting also deliberated on steps required to check suspected fraudulent activities of other chit fund companies, sources said. The alleged scam at Saradha group is said to have defrauded thousands of investors, including poor people.

In the past, the ministry had received complaints of alleged ponzi schemes at 73 companies of about a dozen different groups in West Bengal. These complaints, which also include those against Saradha group entities, were referred to concerned agencies and departments by the ministry.

Saradha group has more than 100 firms registered with the RoC (Registrar of Companies) for businesses across sectors including real estate, auto, education and entertainment.

Most of these companies are registered with names starting with 'Saradha', while there are also firms with other names. The authorities are already looking into alleged ponzi or multi-level marketing schemes of at least 10 Saradha firms.

Majority of the group's firms are into real estate. These include Saradha Build-Dev, Saradha Realty India, Saradha Infra Properties, Saradha Township, Saradha Villa and Saradha Housing. The group also has registered companies related to education, exports, automobiles, shopping mall, agro development, tour and travels, among others.

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