CBI launches investigation against 60 money pooling firms

On Tuesday, the CBI raided 19 locations, residential as well as commercial premises

The Central Bureau of Investigation (CBI) is likely to start investigation against 60 money pooling companies, across India, by way of search and seizure. Of this, more than half are based in West Bengal.

Last month, a Amanatkari and Agent Surksha Macha, a forum of small depositors union, submitted a list of 34 companies based in West Bengal to the Securities and Exchange Board of India (Sebi), accusing them of defaults and illicit money pooling activities.  

Recently, Sebi forwarded the list to CBI for probing the money trial involved in them. This apart, as par the a Supreme Court directive in May 2014, the CBI was asked to investigate 44 companies involved in money raising activities. Of the, 34 companies submitted by the forum, the CBI started probe in case of 16 companies, thus taking the total number of companies in the immediate CBI radar to 60, according to sources.

Of the 44 companies, which were referred by the SC to Sebi, about 17 were based in Kolkata. Thus, of the total of 60 companies under CBI radar, more than half, around 33 are based in West Bengal.  

On Teusday, the CBI raided the 19 locations, residential as well as commercial premises, of MPS Greenery. Earlier, P Manna, owner, MPS Greenery, was sent to police custody on September 26th after interrogation at the Shyamal Sen Commission.

MPS has been mobilising funds through collective investment schemes (CIS) for a long time through instruments such as teak, agro and plantation bonds. In 2012,  Sebi had ordered the firm to deposit Rs 1,169.39 crore in the escrow account of a public-sector bank and stop running the schemes.  According to a representative of MPS investors’ forum MPS’ outstanding dues were about Rs 1,860 crore.

Meanwhile, yesterday, the Enforcement Directorate interrogated Rose Valley Group chief Gautam Kundu for its money pooling activities. While Saradha had defaulted on payments to the tune of Rs 2,400 crore to 1.25 million depositors, MPS and Rose Valley together owe Rs 5,860 crore to their investors.

Earlier, on Saturday, CBI had arrested arrested Shivnarayan Das, director of Silicon Group, another money-pooling company. Das is believed to be an aide and advisor of Sudipta Sen of Saradha Group.

Over the past three years, some of the companies against which Sebi had issued orders to wind up schemes include Vibgyor Allied Infrastructure, Prayag Infotech Hi-Rise, Rose Valley Real Estate and Construction, Alchemist and MPS Greenery Developers.

During the Saradha probe itself, the Sen Commission received 1.7 million applications. Although most of these had deposited money in Saradha, investors of other companies such as Amazon Capital, Suraha Microfinance, Sunmarg, ICore, Rose Valley and Alchemist have also registered complaints with the Commission.