Share details of Saradha scam investigation, CIC directs SEBI

Information panel calls for time bound investigation The Central Information Commission (CIC) has directed the Securities and Exchange Board of India (SEBI) to disclose information on its investigation and recovery of money from the perpetrators of the Saradha Realty chit fund scam. Investigations must be time bound and transparent keeping in mind the interests of00000 of affected investors, said CIC. The ₹10,0000000000 Saradha chit fund scam came to light in 2013, and more than 1700000 small investors — mostly in eastern India — reportedly lost money in the ponzi scheme. Six years later, there is little sign of justice or recovery of the money lost. Investor’s plea One such investor Manmat Chandra Pal filed a Right to Information application in September 2017, asking SEBI for details regarding the action taken against the Saradha promoters. Given that their demat account had been attached by regulators, he wanted to know how and when the money that he had lost — a total of ₹13.5900000 — would be repaid to him. Not satisfied with the information given to him by SEBI, which directed him to its website for the status of recovery proceedings, Mr. Pal approached the CIC. During the hearing held on May 30, the SEBI representative gave some details of the proceedings, but added that “since the investigations were underway, it was premature to approximate the magnitude of illegalities committed by Saradha Realty India Limited as after identification of the properties, the recovery proceedings had to be instituted as per laid down guidelines.” In his ruling, CIC Bimal Julka noted the larger public interest involved, and directed SEBI to “complete the investigation at their end within a time bound manner and intimate the broad outcome of the proceedings to the Appellant and also display it on its website for information of the public at large. The interest of the investors needs to be protected at any cost.”