Crime branch mulls probe into Saradha chit fund scam

The Odisha government has swung into action on the Saradha chit fund scam with the economic offences wing under crime branch mulling probe into complaints filed by duped investors.

"We have received complaints from 3-4 investors and the matter is under consideration. The Saradha case is a matter of enquiry”, said a source at the economic offences wing.

The Balasore police administration maintained it has been watching the developments relating to the Saradha group closely.

"We are watching the activities of the group closely ”, said Amrita Dash, superintendent of police-Balasore, where the group has its presence.

B K Sharma, additional director general of police refused to comment anything on the matter. Phone calls made to state home secretary U N Behera remained unanswered.

It may be noted that in the letter to the Central Bureau of Investigation (CBI), Sudipta Sen, the chairman-cum-managing director of the Saradha Group had pointed out that there is a financial scam in Odisha with participation of marketing leaders.

"There is a serious part of financial scam in Odisha and most of the marketing leaders have participated in the financial scam and lakhs and crores of rupees has been generated by them of their own gain. So, before paying any amount to the investors, identification of the subscribers/depositors whether he is original depositor or not is to be ascertained”, he stated.

The group owns land in Balasore and Sambalpur districts in the state

"In Odisha, we have a land at Balasore, the land is very costly and also we have some land at Sambalpur, 60% payment has already been made but the land has not yet been registered and the landlord has agreed to pay the amount they have taken”, Sen's letter stated.

It may be noted that the state government had constituted a panel headed by J K Mohapatra, principal secretary (finance) to check growing instances of  unscrupulous financial establishments defalcating savings of common citizens.

The panel also included secretary (home), additional director general (police), registrar of companies (Odisha), registrar of cooperative societies (Odisha) and representative of Securities and Exchange Board of India (Sebi) as members.

Mohapatra was not immediately available for comments. A finance department official said though the panel has been formed, hardly any activity has been initiated.

Lately, there have been rampant incidents of some unscrupulous financial establishments and fly-by-night operators duping people, especially in small towns through chit funds, multi-level marketing schemes and collecting investment schemes.

The frequency of such cases of fraudulent deals have been particularly high in Balasore in the state's northern belt where people have been more vulnerable to schemes offered to them in the guise of profitable investment.