SFIO submits its final investigation report on Saradha scam
The final investigation report pertaining to the Saradha scam has been submitted to the Government’s Corporate Affairs Ministry by the Serious Fraud Investigation Office (SFIO).
The submission of the report comes after the SFIO’s year-long investigation into the scam, in which thousands of crores of rupees were swindled from lakhs of investors in West Bengal, as well as neighbouring States, via unlawful money pooling activities. The scam was exposed early last year.
Unidentified sources familiar with the report submitted by the SFIO to the Corporate Affairs Ministry have disclosed that the report enlists the violation of several provisions of the Companies Act by different entities.
The sources have also revealed that the SFIO’s report is being studied by the Ministry; with prosecution proceedings likely to be commenced under the Companies Act in the near future.
As per the sources, the CBI – which is also investigating the Saradha scam – is also being apprised about the observations made in the SFIO’s final investigation report on the scam.
In addition, issues related to collective investment schemes are being referred to the capital markets regulator SEBI – Securities and Exchange Board of India – for further action. SEBI had passed an order against Saradha Realty in April 2013, and had asked the company to refund the money of the investors.
Source – The Hindu Business Line
Corporate Affairs Ministry, Investigation, legal, Saradha scam, SEBI, Security and Exchange Board of India (SEBI), Serious Fraud Investigation Office
