The Corporate Affairs Ministry has decided to order a probe into the affairs of Saradha group companies, amid a growing controversy over alleged defrauding of investors by the Kolkata-based entity.

According to sources, the decision to conduct a probe followed a meeting held this morning by Corporate Affairs Minister Sachin Pilot with senior officials from the Ministry.

Chit fund scam

Besides Saradha group, the meeting also deliberated on the steps required to check suspected fraudulent activities of other chit fund companies, they said, while adding that a formal announcement of the probe would be made soon.

The alleged scam at Saradha group is said to have defrauded thousands of investors, including poor people, in West Bengal, while its chief Sudipta Sen has been brought to Kolkata after being arrested in Kashmir Valley two days ago.

Ponzi schemes

The Ministry had received complaints of alleged ponzi schemes at 73 companies of about a dozen different groups operating in West Bengal.

These complaints, including those against Saradha group entities, had been referred to the agencies and departments concerned by the Ministry.

The Securities and Exchange Board of India is also probing the fund-raising activities of Saradha group.

Besides, the Income-Tax Department would also investigate the investments and finances of Saradha group. It is already probing five other similar cases in West Bengal.

(This article was published on April 25, 2013)
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