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Saradha scam

About Saradha scam

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What is Saradha scam case

The Saradha scam, also known as Saradha Group financial scandal, was a major financial scam that surfaced in 2013. 
 
Investigation into the multi-crore ponzi scheme has been on since then.
 
The Saradha scheme
 
The scheme, run by Saradha Group (an umbrella company with 200 private players), was launched in the early 2000s by businessman Sudipto Sen. Aimed at small investors, the scheme became popular in a very short time as it promised high returns. The money was collected through a wide network of agents, who were paid commissions of over 25 per cent. 
 
The Saradha Group raised about Rs 2,500 crore in a few years time. The company used varied marketing means to build its brand. Apart from popular marketing techniques like celebrity endorsements, the company used to sponsor cultural events such as Durga Puja and invest in popular football clubs to attract more investors.
 
The scheme soon expanded to Odisha, Assam, and Tripura, and the number of investors reached close to 1.7 million.
 
The TMC connection
 
Over a dozen TMC MLAs and MPs, including ministers, have been questioned by CBI in connection with the scam. Many of these leaders were directly involved in the group's operations. 
 
Actor and TMC leader Satabdi Roy was Saradha's brand ambassador. Then TMC MP Kunal Ghosh was appointed CEO of the media group in which Saradha had invested Rs 988 crore. Another party leader Srinjoy Bose was also involved in the group's media operations.
 
Madan Mitra, the then West Bengal Transport Minister, headed the group’s employees’ union.
 
Apart from TMC, the group allegedly also had connections with Congress leader Matang Sinh and Assam BJP leader Himanta Biswa Sarma, who was then in the Congress.
 
How the Saradha scam unravelled
 
Problems started in the company in 2012, when SEBI asked the group to stop accepting money from investors and obtain the regulator's permission to run its schemes.
 
By January 2013, the company was engulfed in a crisis when for the first time Saradha Group’s cash inflows were found to be lower than its outflows. The scheme collapsed by April, prompting agents and investors to file police complaints.
 
SIT and CBI probe
 
The West Bengal government initially set up a Special Investigation Team (SIT), headed by the then Kolkata Police Commissioner, Rajeev Kumar, to probe the case. The case was transferred to the CBI in 2014 at the behest of Supreme Court.
 
CBI considers Kumar as a potential accused in the case and has accused him of not handing over crucial documents to the agency. 
 
Kumar first grabbed headlines in February 2019, when the CBI was stopped by the Kolkata police, from questioning him.
 
Bengal Chief Minister Mamata Banerjee rushed to the spot and staged a three-day sit-in protest against CBI's move.
 

Latest Updates on Saradha scam

Capital markets regulator Sebi said it will auction 61 properties of Saradha Group on July 17 at a reserve price of over Rs 26 crore to recover money raised by the firm

Updated On: 12 Jun 2023 | 7:57 PM IST

Markets regulator Sebi said it will auction 66 properties of Saradha Group on April 11 at a reserve price totalling Rs 32 crore to recover money raised by the firm from public through illicit schemes

Updated On: 13 Mar 2023 | 5:29 PM IST

The properties to go under the hammer include land parcels located in West Bengal

Updated On: 17 Nov 2022 | 4:29 PM IST

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Updated On: 29 Mar 2021 | 6:03 AM IST

The CBI last week searched the residences of three officers of the Sebi in connection with the Saradha Ponzi scheme

Updated On: 29 Mar 2021 | 2:06 AM IST

Senior TMC leader and former West Bengal minister Madan Mitra on Friday deposed before Enforcement Directorate (ED) officials here in connection with the probe into Saradha chit fund scam

Updated On: 19 Mar 2021 | 1:15 PM IST

In a development which may further increase the political heat in West Bengal where Assembly polls are slated early next year

Updated On: 27 Dec 2020 | 4:39 PM IST

The ghost of the multi-crore Saradha ponzi scam is back to haunt the Mamata Banerjee-led Trinamool Congress in the state

Updated On: 27 Dec 2020 | 3:53 PM IST

A bench headed by Chief justice S A Bobde told Solicitor General Tushar Mehta that the agency has to convince the top court why custody of the former Kolkata Police Commissioner was needed in the case

Updated On: 29 Nov 2019 | 1:06 PM IST

The probe agency on Thursday also moved a city court seeking an arrest warrant against Rajeev Kumar in the Saradha ponzi scheme scam

Updated On: 19 Sep 2019 | 7:14 PM IST

The special court, in charge of trial of criminal cases against MPs and MLAs, said it is a trial court and cannot hear an anticipatory bail application

Updated On: 17 Sep 2019 | 12:30 PM IST

Rajeev Kumar's anticipatory bail application is likely to come up before a special CBI court

Updated On: 17 Sep 2019 | 11:41 AM IST

A CID official visited the CBI office in Salt Lake and submitted the letter, in which Kumar said he is on a three-day off and, therefore, unable to attend the summon

Updated On: 27 May 2019 | 7:42 PM IST

A team of the Central Bureau of Investigation (CBI) visited Kumar's official residence in Kolkata on Sunday evening to serve the notice

Updated On: 27 May 2019 | 12:42 AM IST

The agency wants custodial interrogation of Kumar, a 1989-batch IPS officer, in connection with Rs 2500 crore Saradha ponzi scam as he was heading the Special Investigation Team of West Bengal Police

Updated On: 26 May 2019 | 2:30 PM IST

Kumar was earlier granted protection from arrest by the apex court for seven days which ends today

Updated On: 24 May 2019 | 1:05 PM IST

The apex court had granted Rajeev Kumar seven days to approach the competent court for legal remedies but his counsel has now asked for an extension

Updated On: 20 May 2019 | 12:22 PM IST

The apex court had granted interim protection. Rajeev Kumar, the former police commissioner, now has seven days to approach court for legal remedy.

Updated On: 18 May 2019 | 12:17 AM IST

Telcos maintain 'full cooperation' with CBI on Saradha scam investigation

Updated On: 30 Mar 2019 | 12:30 AM IST

The court, which asked both sides to file their additional affidavits and complete pleadings by February 25, has posted the matter for hearing on February 27 before an appropriate bench

Updated On: 20 Feb 2019 | 8:30 PM IST