Left Front urges PM to order central probe in Saradha scam

The Left Front has written to Prime Minister Manmohan Singh seeking central investigation in the multi-crore Saradha chit fund scam in West Bengal and effective steps by the SEBI for possible refund of money to the investors, a CPI-M leader said Tuesday.

Leader of Opposition Surjya Kanta Mishra, of the Communist Party of India-Marxist CPI-M), said here that he has sought investigations by central agencies into the chit fund scam.

"The important point to note is that the three month notice period in the SEBI's order (April 23) has already expired. But no refund of money to the suffering depositors has been reported," he said.

Days after the Saradha scam rocked the state, the Securities and Exchange Board of India (SEBI) April 23 had directed the company to "wind up their collective investment schemes and refund the money collected under different schemes with returns that are due to investors as per terms of the offer, failing which prosecution proceedings will be pursued".

Mishra also criticised the state's Mamata Banerjee regime for not taking nay steps to indemnify the duped investors.

"The state government has not filed a single police complaint in the entire matter. All the cases against the group have been lodged by duped investors," he said.

Mishra said that in his letter to the prime minister, he has attached a copy of the communication sent to him by the central government last month which stated that "legal hurdles were repeatedly being created on the action path of the SEBI".

Stating that the central government "cannot keep mum" on the issue, he contended that the reply to him was "insufficient".

"In our understanding, responsibility of regulation of these financial institutions primarily lies with government of India, along with a supportive and transparent role of the state government," he added.

Saradha group chief Sudipta Sen and several of his employees and key aides are behind bars in connection with the scam which has duped lakhs of depositors of their hard earned money.

Following the Group's collapse, the state has witnessed a spate of suicides by agents, operators and investors of the Saradha and other similar companies.