CPI(M) rejects allegations on chit funds, demands probe

Former West Bengal finance minister Asim Dasgupta today urged the Centre to intervene in the chit funds scandal and, if necessary, ask the CBI to investigate the matter, rubbishing claim that such companies had mushroomed during the Left Front rule.
"Why did this Trinamool Congress regime not take any action against these chit funds? Why did they take so long to issue arrest warrant against the director of Saradha Group? The government should have taken strong steps against it," Dasgupta said while addressing reporters here.
Dasgupta, who was the long-serving finance minister in the erstwhile Left Front government, said the Centre should immediately intervene in the matter and, if needed, ask the CBI to conduct a thorough inquiry in coordination with SEBI and other organisations,

The CPI(M) leader said that his government had taken strong steps against chit fund companies in the early 90s and that it had also passed a bill in the state Assembly which was later sent to the President for approval.
"We had arrested several big fish who were involved in these business and were fleecing people. We had also passed a bill in the Assembly for taking strong action against the such companies. The bill was sent to the President for approval so that it can become a law, but the bill is yet to be approved," Dasgupta said.
He also brushed aside allegations by the TMC regime that the businesses of chit funds had mushroomed during the Left Front regime.

"It is an absolutely baseless allegation. Either they don't know it or they are trying to mislead the people. The approval to these firms are given by Registrar of Companies under the Union Commerce Ministry and other financial organisations of the central government. The state has no role in their approval," Dasgupta claimed.
He said that about 100 chit fund companies were operating in the state, out of which 15 are big firms and in last few years they accumulated more than Rs 30,000 crore.