Saradha chit fund row: Sudipto Sen produced in court, charged with fraud

Last Updated: Thu, Apr 25, 2013 08:04 hrs
​Saradha scam

Kolkata: Prime accused in the Saradha chit fund scam, Sudipto Sen and Debjani were produced before a court here on Thursday and charged for violations of sections 406 and 420 of the Indian Penal Code (IPC).

Sen and two other accused were produced in court even as fresh protests erupted.

Sen, who is one of the three accused, blamed two Trinamool Congress (TMC) MPs of 'extortion' and 'blackmail' and held them responsible for his downfall.

Sen, in a letter to Central Bureau of Investigation (CBI), threatened to commit suicide over his predicament, as he feared he would not be able to refund the public money.

The Bharatiya Janata Party (BJP) unit in West Bengal has demanded a CBI probe. Reacting to the situation, Chief Minister Mamata Banerjee promised to take action against guilty.

She also announced a Rs. 500 crore relief fund for duped investors. 

Corporate Affairs Ministry decides to probe Saradha group companies

The Corporate Affairs Ministry today decided to order a probe into the affairs of Saradha group companies, amid a growing controversy over alleged defrauding of investors by the Kolkata-based entity.

The decision to conduct a probe followed a meeting held this morning by the Corporate Affairs Minister Sachin Pilot with the senior officials from the Ministry, sources said.

Besides Saradha group, the meeting also deliberated on steps required to check suspected fraudulent activities of other chit fund companies, they said, while adding that a formal announcement of the probe would be made soon.

The alleged scam at Saradha group is said to have defrauded thousands of investors, including poor people, in West Bengal, while its chief Sudipta Sen has been brought to Kolkata after being arrested in Kashmir valley two days ago.

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

Market regulator Sebi is also probing the fund-raising activities of Kolkata-based Saradha group. Besides, the Income Tax department would also investigate investments and finances of Saradha group. It is already probing five other similar cases in West Bengal.

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