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Chit fund scam can hurt TMC during Panchayat polls: Priyanka Gupta

IBNLive.com
Apr 22, 2013 at 07:13pm IST

CNN-IBN's Principal Correspondent Priyanka Gupta joined IBNLive readers for an interaction on the West Bengal chit fund scam.

Q. Is this because Trinamool is in limelight right now while in other states such scams with thousands of crores are generally brushed under the carpet like in UP or in Karnataka where direct govt role or big corporates are involved. Asked by: Ravi

A. I am not too sure if it has anything to do with a party rising into prominence or being in the limelight as you say it. I would imagine you would be more under public scrutiny if you are a public person I don't think political parties have anything to do with it.

Chit fund scam can hurt TMC during Panchayat polls: Priyanka Gupta

CNN-IBN's Priyanka Gupta joined IBNLive readers for an interaction on the West Bengal chit fund scam.

Q. Why do people of Bengal have too much of faith in chit fund with modern tools of investment like shares, mutual funds being available and PM himself being an economist, so how can small time tricksters commit such a major fraud. Asked by: Manav

A. Chit funds work in a peculiar way, they reach areas usually not tapped by banks, rope in someone from the village who people can trust. They also offer enormous percentage of dividends like in this case it was close to 25 percent.

Q. Does this fraud speak of govt business nexus as both are complicit in the crime while lower level clerks or babus get arrested while common man has to fight legal battle for years. Asked by: Hitesh

A. As of now the agents as well as investors are alleging a nexus. There are allegations of senior TMC leaders giving Saradha patronage and support. The agents claim that they worked for Saradha because they thought the ruling party supports it and it will never sink.

Q. Why are such companies not properly regulated by state or by centre as vulnerable investors get deceived by their actions and such frauds are hidden under the carpet Asked by: Shailesh

A. Absolutely, in fact there is a stringent West Bengal Protection of Interest of Depositors in Financial Institutions Bill which is still hanging fire and hasn't got the president's assent. It was passed first in 2003 and then tweaked in 2009. Delay in forming and implementing laws lead to such glaring slippages.

Q. In newspapers there's information that a ruling party MP is involved in this scam. Asked by: Sathyaki

A. I cannot say with any certainty, probe is on. Trinamool claims that just because Kunal Ghosh the party MP you are talking about is a salaried employee of the company you can't hold him accountable, the left says Trinamool is directly involved.

Q. Hi I want to know whether there is any connection between the chit fund co. and the ruling party, as it is heard or said? Why any of the previous or present govt. did not pay any heed to the forthcoming mounting crisis? Is the blamegame the only answer in front of the public? What will happen to micro investors and the agents? Asked by: Birabrata De

A. The question is why did the government wait for SEBI to alert them and wait for an official complaint. Did they not get a hint of this massive scam earlier.

Q. Chit funds are private parties and people indulge in them at their own will. Now people are saying that they will vote TMC if they compensate the people or else they will commit suicide. What implications would the State Government's decision have in the political and economic scenario of Bengal? Asked by: Agni

A. It can have huge implication for Trinamool if it doesn't immediately find a way to contain this crisis which has already spiralled out of control with lakh of investors losing crores of money. Most of these investors are from rural bengal the core constituency of the Trinamool. So it can have devastating effects during Panchayat elections as and when it happens because there is a palpable sense of trust deficit.

Q. On a macro level why does it seem more apparent each day that Bengal is being overpoliticised? Asked by: Disha

Q. I couldn't agree with you more.

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