Saradha scam: CBI summons West Bengal Minister Madan Mitra

The Central Bureau of Investigation (CBI) on Monday summoned West Bengal Transport Minister Madan Mitra in connection with the Saradha scam. Mitra had earlier not appeared before the CBI as he was unwell. In a major setback to the Mamata Banerjee -led West Bengal Government, the CBI had last month arrested party MP Srinjoy Bose in connection with the scam.

Last month, Trinamool Congress MP and Saradha scam prime accused Kunal Ghosh was hospitalized after he allegedly tried to commit suicide in jail. The Kolkata-based Saradha Group, ponzi scheme had over 10,000 registered chit funds across the country and with an aggregate turnover of Rs.30, 000 crore per annum. The Saradha Group is said to have defrauded thousands of investors, including poor people, inWest Bengal, leading to the arrest of its owner Sudipta Sen.

The industry is governed by Chit Fund Act 40/1982 and is regulated by state governments with their own set of rules. Reserve Bank of India is the principal regulator and at the state level Registrar of Chits/The Inspector General of Registration oversees these regulations.