This Article is From Apr 22, 2013

Mamata Banerjee government may bring an ordinance today to tackle chit fund fiasco

Kolkata: The Mamata Banerjee government may bring an ordinance today to tackle the chit fund disaster unfolding in West Bengal. The scam has cost at least one life - a 50-year-old woman, who had deposited Rs 30,000 with the Saradha Group, set herself on fire yesterday.

Over the last few days, several of Saradha Group's offices across the state have shut down and many of its cheques have bounced. With a huge default in repayments, the group is virtually on the verge of collapse. The West Bengal government has ordered the arrest of its Chairman and Managing Director Sudipto Sen but he is still on the run. So far, only one Saradha director has been arrested.

Saradha had promised abnormally high returns on deposits. Now that it has gone bust, lakhs of depositors and fund collection agents are wondering if they will ever get their money back. They say they put their money and faith in Saradha because Trinamool leaders seemed close to the group.

"The journalist-cum-MP Kunal Ghosh must be arrested. The chief minister has ordered the arrest of Sudipto Sen. Kunal Ghosh also must be arrested," said Uttam Mahapatra, Saradha agent. Mr Ghosh was the Group CEO of Saradha's media interests.

Politics on the issue is snowballing. The Trinamool, denying links with Saradha or its absconding chief, accused the Left government of letting chit funds mushroom.

"These chit funds have been running for the last 35 years. Why didn't the Left take any action against them? They were in government. We are in government only for two years. Their government was there for 35 years," said Trinamool MP Mukul Roy.

The Left denies any responsibility and is asking why the Mamata government has failed to arrest Sudipta Sen.  

A high-level meeting today led by Ms Banerjee will decide what to do next about a disaster that many say is her biggest political challenge yet.

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