SFIO probe suggests Rs. 2,500 crore scam is only top of the iceberg
With regards to the multi agency enquiry in the Kolkotta based Saradha scam, an official investigation suggests that a minimum of 279 companies were floated to channelize the money of innocent investors. A majority of these companies were labelled ‘inoperational’, their sole purpose being multi-routing funds to hide the money trial.
The 2,500 crores in Saradha scam is reported to be raised by four companies alone. It was also revealed that 96% of the money was collected from small investors who had invested less than Rs. 50,000.
Apparently, the money was mobilised through a gigantic network of approximately 3 lakh agents. This scam came into light last year amongst allegations that a section of Trinamool Congress leaders were involved. Millions of investors from West Bengal and the neighbouring regions were pulled into black money pooling activities.
Initially, it was regarded as the Saradha chit fund scam, even though none of the entities were initially registered as chit funds. But it is India’s first major case to be categorised as ‘ponzi’ by the report of the Serious Fraud Investigation Office to the government. Just like a typical ponzi scheme, the group was found to be paying returns to previous investors from the money of the newer investors. SFIO concluded that the Saradha group was primarily concerned with money market operations but camouflaged it as real estate.
SFIO stated that the intention of the fraud was quite apparent from the fact that the funds generated were not utilised for generating surplus. Instead, they were swindled in primarily acquiring media companies and otherwise misappropriating the funds. Action against the group is recommended based on more than 20 violations. According to SFIO, Sudipta Sen, the Saradha group chief who is currently in jail was the the director in 160 companies. His Subhojit Sen occupied the same post in 64 companies.
Unfortunately, the SFIO has not yet figured out the money trail of the funds, since most of the transactions happened in cash. The funds routed through banks were only for acquisition of assets and investments.
The Trinamool Congress MO and Saradha scam accused Kunal Ghosh recently tried to commit suicide in jail, and this is where the case took an interesting turn. A VBI probe has been recommended against top executives of the Saradha group, a minister in West Bengal, some top police officers and other well known individuals. Amongst huge public protests, Corporate Affairs Ministry had asked SFIO in April 2013 to probe the case.
The funds were collected under the tag of real estate, and tour and travel businesses, but the investors were not granted the promised. Refunds were made to some of the investors from the fresh deposits of new investors.
