Rs 500 cr fund bad in law, sealing of all ponzi cos demanded

Forum for Integrated National Security (FINS), a CBDT approved NGO, today said that the relief fund set up by the West Bengal government for defrauded Saradha Group investors was against the law.
In a statement FINS said that the plan by the state government to form a Rs 500 crore fund to compensate depositors through raising taxes would be against the principles of law.
"Technically, both the company and the depositors in such cases have acted illegally. Any tax collection to compensate the depositors for such acts is against principles of law as law allows the government to mobilise public money only in cases of compensating for national calamity, riots and wars," FINS Bengal chapter chairman Ashok Ghosh said.

He also said that going ahead with a new law to curb these companies was like giving time to them to siphon off funds or allow them to escape.
He demanded sealing of 73 companies being termed chit funds to protect the interest of depositors.
"We demand immediate sealing and taking action against all 73 operating ponzi scheme companies termed as chit-funds operating in the state to protect the interest of depositors. The fallout from one case is before us," Ghosh said.