A week after the Saradha chit fund scam broke out, the Centre has decided to intervene and probe the issue.

The Ministry of Corporate Affairs (MCA) is setting up a Special Task Force in the Serious Fraud Investigation Office (SFIO) to investigate the affairs of certain chit fund companies that are alleged to have misused money raised from the public.

The Centre’s move follows public outrage against the alleged duping of investors of Rs 20,000 crore by the Saradha Group through its chit fund and money-pooling activities in West Bengal and neighbouring States. Though State Governments are the appropriate authorities to regulate chit fund companies and schemes under the Chit Funds Act, 1982, the Centre on Thursday said it decided to intervene in larger public interest.

“In view of the larger public interest involved in these cases, and concerns regarding the misuse/laundering by such companies of the ill-gotten wealth, and the possibility that the promoters of these companies may strip these companies, the MCA has decided to set up a special task force,” an official statement said.

Accordingly, all investigations into such chit fund companies are being entrusted to the SFIO with immediate effect. The task force will also co-ordinate with other law enforcement agencies and regulators whenever required, the MCA said.

The market regulator, Securities and Exchange Board of India, is already probing the fund-raising activities of the Saradha Group, which has some 160 companies with interests ranging from real estate, automobile and education to media, exports and travel.

The Enforcement Directorate has registered a case against the Saradha Group and launched investigations into the alleged money laundering. It is learnt that the income-tax authorities will also investigate the investments and finances of the Kolkata-based group. Sudipta Sen, CMD of Saradha Group, who was absconding after the group went bust last week, was arrested on Monday in Srinagar.

The scam has also taken a political turn with parties — All-India Trinamool Congress, the Congress and the CPI(M) — trading charges with one another. The Trinamool Congress asked Finance Minister P. Chidambaram to explain why a Chennai lawyer was fixing deals for the group. “Why was a Chennai lady lawyer fixing deals in the Saradha scam? The Congress Minister must clarify,” the party said.

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