CBI forms special investigation team to probe Saradha chit fund scam

PTI Updated - May 12, 2014 at 04:34 PM.

The Central Bureau of Investigation today constituted a Special Investigation Team (SIT) to probe the Saradha chit fund scam in which investors in four states were allegedly duped of over Rs 10,000 crore.

The team, to be headed by Joint Director (Northeast) Rajeev Singh, will also probe the role of market regulators like the Securities and Exchange Board of India and the Reserve Bank of India.

CBI spokesperson Kanchan Prasad said that the team will have agency officers from West Bengal, Odisha, Northeast and Bihar.

“The Special Investigation Team will soon collect all relevant documents before registering the FIR in the matter. CBI will also look into the larger conspiracy angle,” Prasad said.

The team was formed in the wake of the Supreme Court order on a PIL on Friday asking CBI to probe the matter and directing the state police forces to cooperate with the central agency in the investigation.

CBI will also look into the role of regulators like SEBI, authorities under the Companies Act and the Reserve Bank of India (RBI) as directed by the apex court, agency sources said.

“Investigation conducted so far puts a question mark on the role of regulatory authorities like SEBI, Registrar of Companies and officials of the RBI within whose respective jurisdictions and areas of operation, the scam not only took birth but also flourished unhindered,” a Bench headed by Justice T S Thakur said in its order.

The team will take a legal opinion to decide whether one case has to be registered or separate cases required to be filed, the sources said.

Published on May 12, 2014 10:45