As the Saradha Group chit fund scam left scores bereft of their savings, two PILs have been filed in the Supreme Court demanding a CBI inquiry into the multi-crore chit fund scam. The PILs have sought stopping of the entire chit funds business in the country and also restraint on further collection of funds from investors as an immediate remedial step.
However, a bench headed by Justice AK Patnaik said that it will direct registry for early listing of the PILs filed by West Bengal leaders Pratim Kumar Singha Ray and Subrata Chattoraj.
Stating that Chit funds pose a serious threat to the country?s economy, the PILs said that CBI, under the supervision of the apex court, should probe the chit funds scam as the petitioners have no faith on the police authorities and the proceedings initiated by state government appear to be ?biased and prejudiced.?
They also sought a direction to the Centre and the state governments to file a report giving details of chit funds operating in various states and to publish the names of these chit funds so that common people will not be cheated in the future.
Though the Sebi is the only statutory authority to start Collective Investment Companies and prosecute them for any illegality, it did not do anything except requesting the state governments to cooperate in investigation and stop chit funds firms, the petitioners said. For inactiveness of the state governments to go after such firms, not only small investors lost their savings but the country?s economy also suffered to a great extent, they added.
According to the petitions, while the companies registered under Chit Act are being controlled by the RBI, Registrar of chit fund and respective state government, there is a lack of coordination among these agencies, thus leaving individual investors remedyless.
