CBI to form SIT to probe Saradha scam

A special investigation team (SIT) of the CBI will probe the Saradha chit fund scam in which investors in West Bengal, Odisha and Assam were allegedly duped of Rs 10,000 crore. ‘We will form the SIT as soon as the legalities in the case are finalised,’ CBI director Ranjit Sinha said on Sunday.

The Supreme Court had ordered a CBI probe on Friday following a PIL filed in the matter. The apex court asked the three state police forces to cooperate with the CBI investigation. The 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.

‘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 flourished unhindered,’ an SC bench headed by Justice T S Thakur said in its order. The CBI will be collecting documents from all the state governments pertaining to the scam.

Enforcement Directorate (ED) is also looking into money laundering violation by the Saradha Group. The court said that CBI would probe against Saradha and 44 other companies in Odisha which are allegedly involved in the scam.