A Presentation

On Saradha Group chit fund scam

Std :MAM(Sem-4)

Prepared by: Radadiya mital N. (13)

Submitted to: Ms Dakha ma’am .

(Ass.professor in Smt.Shantaben Haribhai Gajera MBA Mahila college

Amreli)

Introduction

The Saradha Group financial scandal (Bengali was a major financial scam  and political scandal   caused by the collapse of a Ponzi scheme run by Saradha Group, a consortium of over 200 private companies that was believed to be running collective investment schemes popularly but incorrectly referred to as chit fund  in Eastern India.

The group collected around  200 to 300 billion (US$4–6 billion from over 1.7 million depositors before it collapsed in April 2013.

Con…

In the aftermath of the scandal, the State Government of West Bengal  where the Saradha Group and most of its investors were based instituted an inquiry commission to investigate the collapse.

The State government also set up a fund of  5 billion (US$79 million) to ensure that low-income investors were not bankrupted.

SARADHA GROUP

Key People • Sudipto Sen • Debjani Mukhopadhdhay

Originally a financial concern but invested heavily in brand building.

• Bengali film industry • Local television channels • Newspapers

In 2011, Saradha Group buys Global Automobiles, a heavily indebted motorcycle company

The group also invested in football clubs like

Mohan Bagan and sponsored Durga Puja.

What is Saradha chit fund scam?

The Saradha Group financial scandal is popularly known as Saradha chit fund scam.

It's a financial scam that was caused by the collapse of a Ponzi scheme run by Saradha Group in 2013.

Saradha Group is a consortium of over 200 private companies.

All 200 companies were running a wide variety of collective investment schemes (chit fund) throughout East India, especially in West Bengal, Odisha, Assam.

Collapsed of Saradha Group in 2013 caused a loss of Rs 200-300 billion (1 billion=100 crore) to over 17 lakh investors.

Enforcement Directorate (ED) has completed its investigation into the scam. Currently, Central Bureau of Investigation (CBI) has been probing the scam.

What is Ponzi scheme?

Ponzi scheme is a fraudulent investment operation.

An individual or organization (operator) invites investors to invest money into the scheme.

Operators do not pay returns to investors from profit earned by the operator.

Operators of such schemes usually entice new investors by offering higher returns than other investments.

Investments in Ponzi scheme are done in the form of short-term returns that are either abnormally high or unusually consistent.

Who are main accused in Saradha scam?

Sudipto Sen

Sen was the chairman and managing director of the Saradha Group.

Ahead of collapse of Saradha Group, Sen wrote one letter to CBI hurling serious allegations against suspended MP of Trinamool Congress (TMC) Kunal Ghosh.

Sen wrote he had paid large sums of money to several politicians.

Con…

He also stated that TMC leader Kunal Ghosh had forced him to enter into money-losing media ventures.

Kunal Ghosh allegedly blackmailed Sen and forced him to sell one of his channels at below market price.

After posting this letter to CBI on April 10, 2013. Sen fled from Kolkata.

Later he along with two other aides was arrested from Kashmir.

Currently, he has been lodged in a jail in Kolkata.

Saradha Group, West Bengal – Chit Fund Scam

The Saradha Group’s chit fund scam in West Bengal came into the limelight early this year.

A recent investigation regarding the scam summed up to Rs 2,460 crore and about 80% of the money still unpaid to the depositors.

These report revealed that the Saradha Group chairman, Sudipta Sen has been arrested and he is solely responsible for indulging other companies with the help of several branches set up in West Bengal, Odisha,Assam, Jharkhand and other states in order to get deposits from the public as well.

Con…In the report, it is also stated that the four

companies of Saradha group used to retrieve money by attracting many people by promising them a landed property or a foreign tour, either of the two, in return of their deposits.

They used three schemes namely monthly income deposits, fixed deposits and recurring deposits.

Saradha Group has nothing to do with Chit Fund business:

Saradha Group have got about 160 registered activities including realty and resort but not even one activity was registered as Chit Fund in the State, he said, while addressing a press conference.

Con…

The association also demanded that the government come out and clear the air over Chit Funds.

There are about 10,000 Chit Funds registered in India with annual subscription of Rs 30,000 crore per annum.

“We are governed by the Chit Fund Act 1982 and implementations by the respective states. This Act is notified in entire India,” he said.

“The principal regulator is the Reserve Bank of India, Act is made by Central Government and rules are made by respective State Governments,” Mr. Sivarama krishnan added.

Scam involve Mamat

a Banerje

e

Sudipto Sen

Mukul Roy

Kunal Ghosh

Con…"Mamata Banerjee is using her clout to influence

the case of Saradha scam.

She and Mukul Roy have jointly siphoned off money of Saradha chit fund.

Mukul Roy is a former Union Railways Minister and a senior Trinamool leader

Earlier this month, West Bengal Transport Minister and senior Trinamool Congress leader Madan Mitra was arrested by the Centeal Bureau of Investigation in connection with the scam.

Con…

The CBI said Mitra was arrested on prima facie evidence of criminal conspiracy, cheating, misappropriation and deriving undue financial benefits from the Saradha Group after five hours of questioning by the investigating agency.

Mitra's arrest came weeks after the investigating agency arrested Trinamool Congress's Rajya Sabha MP Srinjoy Bose, accused of blackmailing Saradha Group chief Sudipto Sen into paying him Rs.60 lakh a month, an allegation he later denied.