[Reader-list] Scam Summaries

[A. Mani]

___________________________________________________
>From PD

Vol. XXXVII

No. 17

April 28, 2013



Chit Fund scam Exposes TMC Govt



>From Our special correspondent in Kolkata



THE chit fund scam in West Bengal has once again exposed the nexus
between crony capitalists, money launderers and the ruling party. The
unfolding episode of Sharada group’s fraudulent activities and duping
of thousands of people has shattered the media-managed image of
Trinamul leader Mamata Banerjee herself.



Till this report is written, it has come into open that the Sharada
group has collected deposits from thousands (actually lakhs) in the
name of different companies and swindled the money. Their shady
operations have collapsed and depositors have lost their money. That
the company has collapsed came into daylight with the closure of media
houses they were operating. Hundreds of agents came to street as they
were being challenged by depositors. Group’s offices in districts were
ransacked by angry depositors. In these demonstrations, anger was
directed towards TMC ministers and TMC leaders.



Sudipta Sen, the chief of Sharada group fled from Kolkata and was
later arrested in Sonemarg in Kashmir valley.



>From all reports that have appeared in media, one feature is clear:
Sharada group expanded its business in close collaboration with TMC.
It was in fact a public perception even before the scam was busted.
>From 2009, after Trinamul won majority seats in West Bengal in Lok
Sabha elections and joined the government at centre, Sharada group’s
activities increased manifold. In 2011 assembly elections the agents
of this group and some other concerns actively joined in campaign
against Left Front, created a panic that all such funds would be
closed if Left Front returned to power. The Left Front government has
passed a bill in state legislature to control the activities of such
shady funds and the bill was sent to centre in 2010. The bill with
stringent clauses was not returned with mandatory approval of the
president. It was widely believed that TMC, a partner in UPA then,
resisted the approval.



The state government, led by TMC deliberately refused to heed to any
warning about these shady funds. In October 2012, Serious Fraud
Investigation Office (SFIO) of the corporate affairs ministry started
probing the chit funds operating in Bengal. Among the big funds, one
was Sharada and another headed by a Trinamul MP with interests in food
processing and retailing, among others. According to media reports,
the agency did not get any specific information from the state
government on the chit funds even after repeated requests.



One Trinamul MP wrote to centre alleging irregularities, but no action
was taken. In April 2012, union minister of state for health Abu Hasem
Khan Chowdhury of the Congress wrote to the prime minister, alleging
that chit funds were financing the Trinamul Congress. According to
reports, then corporate affairs minister Veerappa Moily also confirmed
there was a direct collusion between the chit funds and the ruling
Trinamul Congress. He even accused a TMC MP of acting as a go-between.



The RBI and the state-level bankers’ committee (SLBC), West Bengal,
also cautioned the state government both in public and in closed-door
meetings. On December 7, 2012 RBI governor D Subbarao said in Kolkata
that the state government was supposed to initiate suo moto action
against such companies. Only after bank representatives insisted on
strong actions at SLBC meetings, chaired by state finance minister
Amit Mitra, did the state’s finance department ask the district
magistrates in January 2013 for reports on the chit funds operating in
their districts. Not a single report has reached the government. The
exercise proved to be an eyewash.



And now, it has come into open that the collusion between TMC and
Sharada was deep. Two Rajya Sabha members of TMC_Kunal Ghosh and
Srinjoy Bose have been directly indicted either taking large amounts
from the group or entering into questionable “deals” with it. Another
Lok Sabha member, worked as ‘brand ambassador’ of the company.
Allegations have surfaced against ministers and many district and
local level TMC leaders have come into public domain.



CPI(M) and Left Front have demanded independent enquiry and quick
approval of the bill that Left Front government sent for assent. The
chief minister, busy in shielding her associates and party leaders has
also advised the losers that "What's gone is gone. Be patient. We are
making a law for you." The opposition slammed Banerjee for such casual
remark. Leader of the opposition Surjya Kanta Mishra said: "The CM's
message is clear. She said, what's gone is gone and if there is more
to be stolen, steal that as well."

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Best

A. Mani


--
A. Mani
CU, ASL, AMS, CLC, CMS
http://www.logicamani.in