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⚫ '''Saradha Group financial scandal''' is an alleged financial scam run by Saradha Group, a consortium of Indian companies running a wide variety of ] in the guise of collective investment scheme (popularly but incorrectly referred in rural India as ]) in ].<ref>{{cite web|author=PTI |url=http://www.thehindu.com/business/Industry/more-saradha-entities-under-sebi-scanner/article4650522.ece |title=More Saradha entities under SEBI scanner |publisher=The Hindu |date= |accessdate=2013-04-25}}</ref> The group collapsed in April 2013 causing an estimated loss of between INR 20,000 - 30,000 crores (4 - 6 billion USD).<ref>{{cite web|author=Soudhriti Bhabani |url=http://www.dailymail.co.uk/indiahome/indianews/article-2313658/Anger-mounts-Saradha-fund-crisis-thousands-depositors-face-ruin.html?ito=feeds-newsxml |title=Anger mounts over Saradha fund crisis as thousands of depositors face ruin &#124; Mail Online |publisher=Dailymail.co.uk |date=2013-01-23 |accessdate=2013-04-25}}</ref><ref>{{cite web|url=http://www.thehindu.com/opinion/editorial/cheat-funds-again/article4654467.ece |title=Cheat funds, again |publisher=The Hindu |date= |accessdate=2013-04-27}}</ref> In the aftermath of this financial scandal the ] set up an inquiry commission to investigate the collapse<ref>{{cite web|url=http://www.telegraphindia.com/1130422/jsp/frontpage/story_16814688.jsp#.UXfgV8V4800 |title=Mamata announces SIT, inquiry into Saradha |publisher=Telegraphindia.com |date=1999-03-01 |accessdate=2013-04-25}}</ref> and have also announced setting up a fund of INR 500 crores to ensure that smallest investors are not bankrupted.<ref></ref>

⚫ '''Saradha Group financial scandal''' is an alleged financial scam run by Saradha Group, a consortium of Indian companies running a wide variety of ] in the guise of collective investment scheme (popularly but incorrectly referred in rural India as ]) in ].<ref>{{cite web|author=PTI |url=http://www.thehindu.com/business/Industry/more-saradha-entities-under-sebi-scanner/article4650522.ece |title=More Saradha entities under SEBI scanner |publisher=The Hindu |date= |accessdate=2013-04-25}}</ref> The group collapsed in April 2013 causing an estimated loss of between INR 20,000 - 30,000 crores (4 - 6 billion USD).<ref>{{cite web|author=Soudhriti Bhabani |url=http://www.dailymail.co.uk/indiahome/indianews/article-2313658/Anger-mounts-Saradha-fund-crisis-thousands-depositors-face-ruin.html?ito=feeds-newsxml |title=Anger mounts over Saradha fund crisis as thousands of depositors face ruin &#124; Mail Online |publisher=Dailymail.co.uk |date=2013-01-23 |accessdate=2013-04-25}}</ref><ref>http://www.thehindu.com/opinion/editorial/cheat-funds-again/article4654467.ece</ref> In the aftermath of this financial scandal the ] set up an inquiry commission to investigate the collapse<ref>{{cite web|url=http://www.telegraphindia.com/1130422/jsp/frontpage/story_16814688.jsp#.UXfgV8V4800 |title=Mamata announces SIT, inquiry into Saradha |publisher=Telegraphindia.com |date=1999-03-01 |accessdate=2013-04-25}}</ref> and have also announced setting up a fund of INR 500 crores to ensure that smallest investors are not bankrupted.<ref></ref>


==Modus operandi== ==Modus operandi==

Revision as of 23:10, 27 April 2013

Saradha Group financial scandal is an alleged financial scam run by Saradha Group, a consortium of Indian companies running a wide variety of ponzi scheme in the guise of collective investment scheme (popularly but incorrectly referred in rural India as chit fund) in Eastern India. The group collapsed in April 2013 causing an estimated loss of between INR 20,000 - 30,000 crores (4 - 6 billion USD). In the aftermath of this financial scandal the State government of West Bengal set up an inquiry commission to investigate the collapse and have also announced setting up a fund of INR 500 crores to ensure that smallest investors are not bankrupted.

Modus operandi

Companies belonging to Saradha Group were incorporated from 2006, initially the companies started to collect money from public by issuing secured debentures and redeemable preferential debentures. However under Indian Securities regulations and Indian Companies Act enforced by market regulator Securities and Exchange Board of India (SEBI), a company cannot raise capital from more than 49 persons without taking permission from SEBI. On being challenged by SEBI, in around 2009, the Group started opening numerous companies (over 300 under some estimate) to create cross-holdings etc. and have tiered corporate structure to make it difficult to pin blame on any one company. However by 2010 under relentless pressure from SEBI, the companies changed its modus operandi and started to conduct business under a collective investment scheme (CIS) which it touted as a form of chit fund, as chit funds were regulated by state government, SEBI warned the state government of West Bengal, later SEBI realised that these were not chit funds but CIS and asked them to immediately stop operating these forms of investment schemes without taking permission from SEBI. The companies by 2011 yet again changed its operating strategy and started chain marketing and forward hotel booking etc. but sold it to public as investment opportunity. Finally in April 2013 just after the collapse of the fund SEBI opined that chain marketing and forward contracts are forms of CIS and asked Saradha Group to immediately desist from raising any further capital and return all deposits by three months.

Key People

  • Sudipto Sen
  • Debjani Mukhopadhdhay
  • Somnath Dutta

Alleged TMC Leaders

In a mail to Central Bureau of Investigation Saradha Group CMD Sudipta Sen has made allegation of extortion against various persons.

Alleged INC Leaders

Operation

Media Operations

Saradha group was the owner of:

  • Bengal Post (English Daily)
  • Seven Sisters Post (English Daily from Assam)
  • Kolom (A Urdu Daily)
  • Channel 10 (Television Media)
  • Paroma (Bengali Daily)

Tollywood Operations

Saradha Group was a financier in Tollywood. Film actress Satabdi Roy was their Brand-Ambassador. Tapas Paul was also associated with them.

Nalini Chidambaram's involvement

Union minister of Finance's wife Nalini Chidambaram is also was also indicated in the scam by TMC and Sudipta Sen.

See Also

References

  1. PTI. "More Saradha entities under SEBI scanner". The Hindu. Retrieved 2013-04-25.
  2. Soudhriti Bhabani (2013-01-23). "Anger mounts over Saradha fund crisis as thousands of depositors face ruin | Mail Online". Dailymail.co.uk. Retrieved 2013-04-25.
  3. "Cheat funds, again". The Hindu. Retrieved 2013-04-27.
  4. "Mamata announces SIT, inquiry into Saradha". Telegraphindia.com. 1999-03-01. Retrieved 2013-04-25.
  5. Mamata sets up fund for duped Saradha investors, Business Standard, 24 April 2013
  6. http://www.sebi.gov.in/cms/sebi_data/attachdocs/1366731012533.pdf
  7. http://www.firstpost.com/ebook_download.php?id=105&utm_source=ebooks&utm_medium=hp
  8. "Sudipta Sen Saradha's letter to CBI". JolChobi Social News. Retrieved 2013-04-25.
  9. "Saradha chitfund: Sudipta Sen sent to 14-day police remand- TIMESNOW.tv - Latest Breaking News, Big News Stories, News Videos". Timesnow.Tv. Retrieved 2013-04-26.
  10. "Assam for CBI probe into Saradha scam". Indiablooms.com. 2004-01-01. Retrieved 2013-04-26.
  11. PTI Apr 25, 2013, 09.31PM IST. "Chit fund: TMC questions role of Chidambaram's wife in Saradha group - Times Of India". Timesofindia.indiatimes.com. Retrieved 2013-04-26.{{cite web}}: CS1 maint: multiple names: authors list (link) CS1 maint: numeric names: authors list (link)
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