Unauthorised chit fund activities have to be curbed, says Manmohan Singh

New Delhi, Apr. 27 (ANI): In wake of the controversy surrounding the chit-fund scam involving Saradha Group in West Bengal, Prime Minister Dr. Manmohan Singh has pointed out the need for curbing unauthorised collection of deposits.

"Unauthorised collection of deposits, in exchange for the promise that exorbitant rate of return will be given, is something which has to be curbed," Dr. Singh told mediapersons after investiture ceremony at the Rashtrapati Bhavan here, when asked for his reaction to the chit fund issue that has affected a lot of ordinary people.

The Ministry of Corporate Affairs had earlier this week decided to set up a Special Task Force in the Serious Fraud Investigations Office (SFIO) to investigate the affairs of such companies.

The Ministry of Corporate Affairs has taken note of the misuse by certain "Chit Fund Companies" who have raised huge sums of money from the public at large,

The state governments are the appropriate authorities for regulation of such chit Fund companies/Schemes under the Chit Funds Act 1982.

However, in view of the larger public interest involved in these cases, and concerns regarding misuse/laundering by such companies of the ill gotten wealth, and the possibility that the promoters of these companies may strip these companies, it has been decided by the Ministry of Corporate Affairs to set up a Special Task Force in the Serious Fraud Investigations Office (SFIO) to investigate the affairs of such companies.

Accordingly, all investigations into such companies are being entrusted to SFIO with immediate effect.

The Task Force will also co-ordinate with other law enforcement agencies and regulators wherever required.

The Saradha Chit Fund scam has robbed thousands of investors of their savings in West Bengal and Assam. A Kolkata sub-divisional magistrate's court had on Thursday remanded Saradha Group chief Sudipto Sen and two others to 14-day police custody.

The Congress and the CPI-M have demanded a CBI enquiry into the scam. The Assam Government is also in favour of a CBI probe in the matter. (ANI)