HC asks West Bengal govt to cite reasons for dissolving Saradha panel

The Calcutta High Court Thursday sought to know from the West Bengal government why Justice (retd) Shyamal Sen Commission was dissolved before it could complete its task of disbursing money to the investors of Saradha ponzi scheme.

The court also directed the Centre to look into ways for distribution of seized funds pertaining to the Rose Valley scam.

A special bench, hearing cases related to chit fund scams, told the state government to present before it an affidavit, stating reasons for not extending the Justice Sen commission's term, in the next seven days.

The bench, comprising Justices Joymalyo Bagchi and Shekhar B Saraf, asked the state if the commission can be given a fresh lease of life, and, if not, then whether the residual amount earmarked by the government for disbursal can be handed over to the investors.

Chief Minister Mamata Banerjee had in April 2013 announced setting up of a Rs 500-crore fund for paying back small and medium investors, who were allegedly duped by the Saradha Group. She set up the one-man commission headed by Sen for the task.

The commission was, however, wound up in October 2014 before it could finish its assignment.

The court also asked the state government, represented by lawyer Amitesh Banerjee, to apprise it of the manner in which the money was disbursed by the commission to the investors and sought a list of names who have got refunds.

Taking up the Rose Valley ponzi scheme, the bench asked the Centre to inform it as to how it plans to reimburse the duped investors with the money seized by the Enforcement Directorate from the company.

In July 2016, the then chief justice of the high court, Justice Manjula Chellur, had constituted a special bench for speedy disposal of chit fund cases.

At least 150 matters related to chit fund companies, including Saradha Group and Rose Valley Group, were then pending before the high court.