Government gets SFIO probe report on Saradha scam; prosecution to start soon

NEW DELHI: The Serious Fraud Investigation Office (SFIO) has submitted its final investigation report on the Saradha scam to the ministry of corporate affairs, listing violations of several provisions of the companies law by various entities following its probe lasting over a year after lakhs of investors in West Bengal and neighbouring states were defrauded of thousands of crores through illegal money pooling activities.

The findings of the SFIO probe are also being shared with Central Bureau of Investigation, officials said, adding that the ministry is looking into the report and prosecution proceedings are expected to start soon under the Companies Act. The ministry had ordered the investigation in April last year after a huge public outcry over the scam. In its interim report submitted last year, the SFIO had said that the companies under the scanner indulged in serious financial mismanagement besides siphoning off funds by promoters, who exploited regulatory gaps.

Saradha Group chief Sudipta Sen is is already behind the bars and as many as 14 Saradha group entities including Saradha Realty India, Saradha Agro Development, Saradha Exports, Saradha Construction Company and Saradha Garden Resorts and Hotels are under the scanner.