The Supreme Court on Monday agreed to hear this week a public interest writ petition seeking a CBI investigation into the multi-crore Saradha chit fund scam in Kolkata.
A vacation Bench of Justices A.K. Patnaik and Ranjan Gogoi directed the matter to be listed for hearing after counsel for the petitioner Pratim Kumar Singha Ray pleaded for early hearing of the PIL under the supervision of the Supreme Court into the chit funds scams in West Bengal.
The petitioner sought a direction to the Centre to stop the entire chit funds business in the country and formulate a mechanism to prevent chit fund companies from collecting money from the public and poor investors.
He wanted the Centre and all States to file a report to show how many chit funds were being operated in various States and publish the names of those so that common people would not be cheated. But the States were inactive for which not only smallinvestors lost their savings but the country’s economy also suffered to a great extent.
The petitioner said the Securities and Exchange Board of India and the Reserve Bank of India were unable to control the chit funds and the Saradha Chit Fund scam was a serious threat to the economy.
Due to lack of coordination among different agencies, the State government was unable to stop the illegal activities of the chit funds under the Chit Fund Act. The individual investors had no remedy and the State agencies were not performing theirduties to protect the small investors. Hence the present writ petition.
He said the probe being conducted by the State into the Saradha Chit Fund scam was biased.