Centre should intervene in chit fund scam: Sushil Modi

BJP leader Sushil Kumar Modi today expressed hope that West Bengal Chief Minister Mamata Banerjee would protect defrauded investors in the Saradha Group scam and demanded that the Centre should intervene in chit fund irregularities.
"She is an honest lady and hard working. I hope she will do something," Modi, who is Bihar Deputy Chief Minister told reporters here.
Stating that both the Prime Minister and the finance minister should immediately intervene, he said "State laws are ineffective to deal with these companies which are raising money from the public under different garbs.
"Only the Centre with the help of RBI, SEBI, corporate affairs ministry and SFIO can deal with this problem and there is a need for a unified regulator," he said.

Asked about the alleged involvement of a few Trinamool Congress MPs in the Saradha Group scam, Modi said, "I am happy that not a single politician in Bihar is linked to these companies.
"If any party leader is involved, then action should be taken," Modi said.

Modi said a number of chitfund companies like Saradha, which are registered in West Bengal were operating in the districts of Bihar.
"Bihar has a law for the protection of small depositors' interest. But these companies are finding loopholes and are carrying out their illegal activities in the state," Modi said in reply to a question.

"These companies try to get associated with big things," he said, alleging one of them is a sponsor for an IPL team.
"This they do to gain credibility in the market which helps them to raise funds," he said.
He said that he had met SEBI chief U K Sinha recently and was assured that the regulator would take action.
Modi also said that the SFIO was seriously understaffed and it would take long time to complete probe of 73-odd companies the names of which had been referred to it.
He said that these firms should be asked to stop collecting money.