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Saradha scam case: CBI raids six locations of three SEBI officials in Mumbai

The Central Bureau of Investigation (CBI) on March 22 conducted raids at six locations in Mumbai, Maharashtra in connection with the Saradha scam case.

Saradha scam case: CBI raids six locations of three SEBI officials in Mumbai-dnm
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Mumbai, First Published Mar 22, 2021, 12:19 PM IST
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Mumbai: The Central Bureau of Investigation (CBI) is conducting raids at multiple locations in connection with its ongoing probe into the Saradha Ponzi scam or Saradha chit fund scam on Monday.

The locations being raided included the residence and office premises of three senior Securities and Exchange Board of India (SEBI) officials.

The three high-ranking SEBI officials have come under the scanner for their alleged role in the scam during their posting in the Kolkata office between 2009-2013, the CBI sources said.

The case relates to an alleged financial scam and political scandal caused by the collapse of a Ponzi scheme run by the Saradha Group. The Centre has undertaken a multi-agency probe into the scam case, including through the Income Tax Department and the Enforcement Directorate (ED).

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 scheme soon expanded to Odisha, Assam, and Tripura, and the number of investors reached close to 1.7 million.

Many prominent personalities, including politicians, Members of Legislative Assembly (MLAs) and Members of Parliament (MPs), have been accused of involvement in the scam. The raids come at a time when the assembly election campaign is picking up pace in Bengal.

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