All the entities engaged in duping the public through Ponzi schemes are being probed by SEBI, RBI and the Corporate Affairs Ministry, among others. Besides, the Income-Tax Department is probing the Saradha group and the Enforcement Directorate has also registered a case of suspected money laundering against it and its chief Sudipta Sen.
Media reports in the past few days have highlighted the illegal raising of deposits in rural and semi-urban areas in eastern India and duping of the gullible public. The promoters allegedly siphon off the money, using a sales network of locals who are offered hefty commissions, in a Ponzi-like scheme. Ponzi schemes involve collecting money from a large number of investors with a promise of huge returns, which are typically paid out from the deposits of new investors. The older investors and agents get hefty commissions for bringing in new investors. But the payouts dry up once new investors stop coming. That’s when the companies go belly up and the promoters run for cover.
SEBI has started action against many companies for violation of one or more regulations. In over 59 cases in the east India, it has initiated prosecution n Collective Investment Schemes related matters in various courts.