Centre orders SFIO probe into chit fund firms

Special Task Force set up to carry out investigations In the wake of an alleged fraud involving000 of0000000 by Kolkata-based Saradha group, the Centre, on Thursday, ordered a SFIO (Serious Fraud Investigation Office) probe into suspected misuse of the public money by various chit fund companies. A Special Task Force has been set up under the SFIO to carry out all investigations into such companies, the Corporate Affairs Ministry said in a statement. The decision was taken in view of a “larger public interest involved in these cases, and concerns regarding misuse/laundering by such companies of the ill-gotten wealth and the possibility that the promoters of these companies may strip these companies,” the Ministry said. The probe follows raging public protest against alleged duping of00000 of investors by the Saradha group through their chit fund and other money-pooling activities in West Bengal. The Corporate Affairs Ministry said the Task Force would also co-ordinate with other law enforcement agencies and regulators wherever required in its investigations. The Securities and Exchange Board of India (SEBI) has already passed an order against one group entity, Saradha Realty India, asking it to wind up all collective investment schemes and refund the money collected from investors. Besides, SEBI is probing at least ten other Saradha entities for raising funds without the regulator’s approval. The Income Tax Department would also soon start its investigations into the activities of this group. The Ministry said the probe had been ordered, although State governments are the appropriate authorities for regulation of such chit fund companies and schemes under the Chit Fund Act, 1982. The decision to order a probe came after a meeting Corporate Affairs Minister Sachin Pilot had with top Ministry officials on Thursday. — PTI Task Force will also co-ordinate with other law enforcement agencies IT Department will soon start investigations into the activities of Saradha group