By Sneha Baby, Intern at CPPR
Saradha scam in West Bengal which came out on April 23rd lead to the loss of small savings of the poor people and a full stop to the life of many agents who worked for the company. Who is responsible and whom should be blamed for scams like this. India has seen many scams but still not learnt from the mistakes. Why always poor people are targeted or becomes the prey of such fraudulent companies. The article looks through the reasons and tries to find a solution to put an end to it.
As per the Securities Exchange Board of India (SEBI) notice, Saradha group collected money from the public promising either land or flat or to refund the money with a return of around 12-24 % .The Saradha group was able to attract people to be the agents for collecting the money as they were promised a commission of 15-20% of the fund mobilised by them. This never came under the purview of RBI or SEBI because the documents submitted to the Registrar of Companies did not mention any thing about mobilising money from public. This clearly shows the failure of the state and central govt and its regulatory bodies.
For further reading click… http://cppr.blogspot.in/2013/05/once-again-scam.html