A WARNING ABOUT PONZI SCHEMES

Recently Saradha group of companies and other 72 cheat fund organizations have cheated millions of innocent and gullible investors in West Bengal and other neighboring states.  They took deposits from millions of  poor people in the name of investing in real estate and other profitable ventures.  But they really invested a small fraction of the funds in real estates and factories just to show off and lure the potential investors.  Most of the money have been siphoned off to secret accounts of the close associates of Chairman and MDwho has been taken into police custody for interrogation.  Only 15 out of his  153 companies are real.   

Like Saradha group, there are other 72 smaller Ponzi funds like Sahara group, MPS Greenery, Rose Valley, Sumangal and I Core group also raised millions of rupees from rural areas with the false promise of doubling their money in 2 or 3 years. Now their operations have been banned and their bank accounts sealed.  Central regulating agency SEBI has issued strong notices to such companies to refund the deposits as they are illegal.    

The agents earned hefty commission (35%) for promising huge returns on the estimated deposits of more than 10 billion rupees. As  they really never invested the hard-earned money, the agents are being attacked for the fraud. So this Ponzi fund is now known as “Cheat Fund”.  The scam surfaced only when they failed to return the sums on maturity. Some of them have been arrested and being interrogated. People are also very angry that the name of Holy Mother Sarada, a saint and wife of Sri Ramakrishna, has been used to perpetrate this crime.

The victims  are semi-literate people who either do not want to go through the paper work for bank account or the greedy who want to grow rich quickly.  They trust these organizations as computer print outs and pass books have been issued to them.  But these group of companies are really fly-by-night operators who siphoned off  the investors’ fund. 

As if we never learn from experience! In the past, Ponzi funds like Sanchayita, Sanchayini and Overland practiced similar fraud on people in 1980. The companies were banned. Promoters died or committed suicide.  Only 10% of 1.2 billion could not be recovered from them. 

Though a little late, West Bengal government has taken strong action against this fraud business.  Many promoters have been arrested and efforts are being made to recover the hidden funds of the investors.  A judicial commission has been set up under Ex-justice Sri Shyamal Sen and applications with documents are being received at his office for refund.  As the head of a responsible government, the Chief Minister appeals to people not to put their hard earned money in dubious Ponzi funds.  She advises people to put their money in govt. post offices  and government-owned banks only.