SFIO completes investigation of 14 companies

SFIO has completed investigation into the affairs of 14 companies of the Saradha Group of Companies in connection with what has come to be known as the 'Chit Fund Scam' which involved a number of schemes carrying unsustainably high rates of interest. The investigation has concluded that schemes run by such companies were 'Ponzi Schemes' i.e. arrangements where the primary source of payment to subscribers is the collections made from newly enrolled members rather than from income generated from investments.