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WB chit fund scam: SEBI asks Saradha group to return investors' money

CNN-IBN
Apr 23, 2013 at 10:24pm IST

New Delhi: The Securities and Exchange Board of India (SEBI) on Tuesday ordered Saradha Realty India and its MD Sudipta Sen, accused in the West Bengal chit fund scam, to wind up all its collective investment schemes and refund money to the investors within three months.

The SEBI order said that Saradha Realty and its chief were barred from the securities market till all the money was refunded to the investors.

ALSO SEE WB chit fund scam: Police seize Saradha group promoter's property

Sudipta Sen and two others were arrested from Jammu and Kashmir on Tuesday. The West Bengal police later seized Sen's properties and is presently in the process of questioning the senior staff of the company.

WB chit fund scam: SEBI raps Saradha group

The SEBI order said that Saradha Realty and its chief were barred from the securities market till all the money was refunded to the investors.

Thousands of journalists left jobless; depositor commits suicide

ALSO SEE WB chit fund scam: 3 including Saradha promoter arrested in J&K

Crisis in the group was brewing since January, which forced it to recently wind up at least 10 media organisations - newspapers and television channels - that it had launched or acquired since 2010. Over 1,000 journalists and non-journalists have been rendered jobless.

Meanwhile, with Saradha Group's debacle, its depositors have been left in the lurch. While many have been protesting, some of them even attempted suicide. A 50-year-old woman, who had deposited money in chit fund company Saradha Group, on Sunday succumbed to her injuries after she set herself on fire, while a man tried to poison himself, even as political parties traded charges over the scandal. Urmila Pramanik, a resident of Baruipur in South-24 Parganas district, who had invested Rs 30,000 with the chit fund company, set herself on fire on Saturday evening at her home after coming to know that the company had gone bust.

ALSO SEE West Bengal chit fund scam: Another Saradha agent attempts suicide

She was taken to Baruipur sub-divisional hospital with serious burns and later shifted to Chittaranjan Hospital in Kolkata where she died on Sunday. Lakshman Ghorui of Diamond Harbour consumed poison, but his condition was stable, police said.

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