What is Saradha scam case

Saradha scam

What is Saradha scam case
What is Saradha scam case
The Saradha scam, also known as Saradha Group financial scandal, was a major financial scam that surfaced in 2013. 
 
Investigation into the multi-crore ponzi scheme has been on since then.
 
The Saradha scheme
 
The scheme, run by Saradha Group (an umbrella company with 200 private players), was launched in the early 2000s by businessman Sudipto Sen. Aimed at small investors, the scheme became popular in a very short time as it promised high returns. The money was collected through a wide network of agents, who were paid commissions of over 25 per cent. 
 
The Saradha Group raised about Rs 2,500 crore in a few years time. The company used varied marketing means to build its brand. Apart from popular marketing techniques like celebrity endorsements, the company used to sponsor cultural events such as Durga Puja and invest in popular football clubs to attract more investors.
 
The scheme soon expanded to Odisha, Assam, and Tripura, and the number of investors reached close to 1.7 million.
 
The TMC connection
 
Over a dozen TMC MLAs and MPs, including ministers, have been questioned by CBI in connection with the scam. Many of these leaders were directly involved in the group's operations. 
 
Actor and TMC leader Satabdi Roy was Saradha's brand ambassador. Then TMC MP Kunal Ghosh was appointed CEO of the media group in which Saradha had invested Rs 988 crore. Another party leader Srinjoy Bose was also involved in the group's media operations.
 
Madan Mitra, the then West Bengal Transport Minister, headed the group’s employees’ union.
 
Apart from TMC, the group allegedly also had connections with Congress leader Matang Sinh and Assam BJP leader Himanta Biswa Sarma, who was then in the Congress.
 
How the Saradha scam unravelled
 
Problems started in the company in 2012, when SEBI asked the group to stop accepting money from investors and obtain the regulator's permission to run its schemes.
 
By January 2013, the company was engulfed in a crisis when for the first time Saradha Group’s cash inflows were found to be lower than its outflows. The scheme collapsed by April, prompting agents and investors to file police complaints.
 
SIT and CBI probe
 
The West Bengal government initially set up a Special Investigation Team (SIT), headed by the then Kolkata Police Commissioner, Rajeev Kumar, to probe the case. The case was transferred to the CBI in 2014 at the behest of Supreme Court.
 
CBI considers Kumar as a potential accused in the case and has accused him of not handing over crucial documents to the agency. 
 
Kumar first grabbed headlines in February 2019, when the CBI was stopped by the Kolkata police, from questioning him.
 
Bengal Chief Minister Mamata Banerjee rushed to the spot and staged a three-day sit-in protest against CBI's move.
 

Latest Updates on Saradha scam

Sebi to auction 61 Saradha Group property on July 17 to recover money

2 min read Last Updated : Jun 12 2023 | 7:57 PM IST
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Sebi to auction 66 properties of Saradha Group on April 11 to recover money

2 min read Last Updated : Mar 13 2023 | 5:29 PM IST
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Sebi to auction properties of Saradha Group of Companies on Dec 16

2 min read Last Updated : Nov 17 2022 | 4:29 PM IST
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Best of BS Opinion: Political culture, the war against NPAs, and more

1 min read Last Updated : Mar 29 2021 | 06:03 AM IST
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Defending Sebi on Saradha scam

6 min read Last Updated : Mar 29 2021 | 02:06 AM IST
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Saradha scam: TMC leader Madan Mitra deposes before Enforcement Directorate

1 min read Last Updated : Mar 19 2021 | 1:15 PM IST
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Saradha scam: Salaries were paid from CM relief fund, says CBI

5 min read Last Updated : Dec 27 2020 | 4:39 PM IST
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Saradha scam ghost back as CBI moves SC to quiz former top cop

4 min read Last Updated : Dec 27 2020 | 3:53 PM IST
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Saradha chit fund case: SC seeks Rajeev Kumar's response on CBI bail appeal

1 min read Last Updated : Nov 29 2019 | 1:06 PM IST
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CBI searches for former Kolkata top cop, serves deadline for questioning

2 min read Last Updated : Sep 19 2019 | 7:14 PM IST
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Special court refuses to hear Rajeev Kumar's anticipatory bail plea

1 min read Last Updated : Sep 17 2019 | 12:30 PM IST
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Former Kolkata police commissioner Rajeev Kumar fails to appear before CBI

2 min read Last Updated : Sep 17 2019 | 11:41 AM IST
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Ex-Kolkata police chief Rajeev Kumar skips CBI summons, seeks more time

2 min read Last Updated : May 27 2019 | 7:42 PM IST
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Saradha scam: CBI summons ex-Kolkata police chief Rajeev Kumar on Monday

3 min read Last Updated : May 27 2019 | 12:42 PM IST
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CBI issues lookout notice against Rajeev Kumar in Saradha scam case

3 min read Last Updated : May 26 2019 | 2:30 PM IST
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Saradha scam: SC rejects ex-Kolkata cop plea seeking protection from arrest

1 min read Last Updated : May 24 2019 | 1:05 PM IST
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Ex-Kolkata CP Rajeev Kumar seeks extension of protection in Saradha Scam

2 min read Last Updated : May 20 2019 | 12:22 PM IST
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Saradha scam: SC vacates order protecting ex-Kolkata commissioner

2 min read Last Updated : May 18 2019 | 12:17 PM IST
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Saradha scam: SC issues notice to Vodafone, Airtel over CBI plea

2 min read Last Updated : Mar 30 2019 | 12:30 PM IST
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