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Last Updated : Jul 18, 2018 01:23 PM IST | Source: Moneycontrol.com

Here's all you need to know about Saradha scam

An umbrella company with 200 private players, Saradha Group in West Bengal was alleged of cheating more than a million investors by running Ponzi schemes

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A special court for economic offence cases has summoned former Union minister P Chidambaram's wife, son and daughter-in-law to appear on June 25 in connection with the prosecution initiated by the Income Tax Department under the Black Money Act.

Tax authorities had filed a complaint against them over alleged non-disclosure of overseas assets, which is an offence under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act.

Earlier, the Enforcement Directorate (ED) had also issued fresh summons to Nalini Chidambaram in connection with its money laundering probe into the Saradha ponzi scam.

Also read — Saradha case: Enforcement Directorate summons Nalini Chidambaram again

Here's all you need to know about the Saradha chit fund scam:

> An umbrella company with 200 private players, Saradha Group in West Bengal was alleged of cheating more than a million investors by running Ponzi schemes.

> The scam, which came to light in April 2013, was worth over Rs 10,000 crore.

> Following the unearthing of the scam, the state government set up a Rs 500 crore relief fund for small investors who had put money in the scheme, to prevent them from going bankrupt.

> On April 23, 2013, Chairman and MD Sudipta Sen, along with Debjani Mukherjee and Arvind Singh Chauhan, were arrested from Kashmir.

> After their arrest, SEBI asked Saradha Group to immediately stop raising any further capital and return all deposits within three months.

Also Read: Sebi orders Saradha Realty to close schemes, refund money

> In a written application, Sen confessed that several Trinamool Congress MPs were also involved in the scam. According to a Mint report, MPs Kunal Ghosh and Srijoy Bose; former West Bengal Director General of Police (DGP) Rajat Majumdar; and Sports and Transport minister Madan Mitra were allegedly involved in the scam.

Also Read: Saradha scam: Why Rs 500cr relief fund won't be sufficient 

> The West Bengal chit fund scam brought together various government agencies like market regulator SEBI, RBI, the income tax department, finance ministry as well as the corporate affairs ministry to investigate the scam.

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First Published on Jun 25, 2018 01:03 pm
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