Millennium Post

SFIO submits interim report on Saradha chit fund scam to Govt

A SFIO probe into Saradha scam and ‘chit fund’ operations of 62 other entities has found serious financial mismanagement and siphoning off the funds by their promoters, who took advantage of regulatory gaps. The financial fraud investigative agency is also trying to get details stored by these entities on computer servers located abroad, the Corporate Affairs Ministry said on Monday while releasing excerpts of the interim report on SFIO probe.

While the final report would be submitted by the Serious Fraud Investigation Office (SFIO) by December, the interim report has said that ‘useful information has been collected from the servers of the companies housed in India by using forensic technology.

‘However, enforcement agencies are making all efforts to access information stored in servers located outside India,’ it said. The promoters of these companies have tried to take advantage of multiple legislations with overlapping jurisdictions, it added.

‘There has been proliferation of innovative financial products in the market due to technological advancement and extensive use of the internet to market such products to investors,’ the report said.
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