Saradha scam: SC issues notices to WB, Centre

The apex court was hearing two public interest litigations relating to Saradha chit fund scam

The Supreme Court (SC) today issued notices to the central and West Bengal governments and the CBI on two public interest litigations (PILs) relating to the Saradha chit fund scam.

The petitions seek CBI investigations into the scam, which has resulted in huge loss to small investors, leading to deaths and suicides in the state.

Several executives of the company, including its chairman, have been arrested from other states.

The bench headed by Chief Justice Altamas Kabir asked the governments to respond to the allegations in the petitions within three weeks. The state government counsel, who supported the petitioners, pointed out that the Calcutta high court is already seized of the matter and an inquiry is in progress.

The high court is also monitoring the case there. However, the Supreme Court observed that it was not concerned with the cases in the high court.

The petitioners alleged that it was not only Saradha chit fund, but there are several such schemes running in the country which are unauthorised or illegal. People are losing their hard-earned money by trusting the promises of these ponzi scheme operators, it was argued. Currently, the state police is investigating into the matter.

Last month, the high court had stated that a special court will try the cases. It also asked the Justice (retd) Shyamal Sen Commission, set up by the state government, to take custody of Saradha properties and consider selling  them for payment of dues to genuine depositors and other claimants.