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CBI to register first set of cases in Saradha scam by the end of May

LiveMint logoLiveMint 23-05-2014 Aman Malik

New Delhi: The Central Bureau of Investigation (CBI) will register the first set of cases in the alleged Saradha chit fund scam by the end of May, an agency spokesperson said.

“The process of taking over the documents by the CBI is on. After a careful study and scrutiny, CBI is likely to register some cases by month end,” the spokesperson said.

On 20 May, the agency had said that a Special Investigation Team looking into the case had met the chief secretaries and directors general of police of West Bengal and Odisha and had made a formal request for the transfer of documents related to the case.

On 9 May the Supreme Court had asked the CBI to take over the investigation into the alleged chit fund fraud case, following which, on 12 May, the CBI had set up the special investigation team.

The alleged scam was caused by the collapse of a so-called ponzi scheme being run by the Saradha Group, a consortium of a large number of companies that was running several collective investment schemes.

In April last year, the consortium collapsed causing an estimated loss of more than Rs2,000 crore to 1.7 million small investors. These estimates were given by a commission set up under the chairmanship of former Allahabad high court chief justice Shyamal Sen.

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