Saradha Group just the tip of the iceberg; atleast 26 cos that raised over Rs 17K cr in West Bengal

KOLKATA: Saradha Group, which mobilized over Rs 2,000 crore from West Bengal and other east and northeastern states, was not the only company that was running Ponzi schemes.

Even according to conservative estimates, there are at least 26 groups that have allegedly been operating such schemes for the last seveneight years, raising over Rs 17,000 crore in West Bengal alone. There are at least 15 companies which have individually mobilized more than Rs 500 crore.

In the Lok Sabha on March 14, 2013, Union minister of state for corporate affairs Sachin Pilot presented a state-wise list of companies against which complaints were received for indulging in such Ponzi schemes. According to the list, there are 73 firms, including Saradha Realty, against whom there are complaints for allegedly violating the CIS (collective investment scheme) law.

These include Vibgyor Allied Infrastructure, Rose Valley Real Estates Constructions, Rose Valley Industries, Silver Valley Communications, Modern Investment Traders, Rupasi Bangla Projects India, Saradha Realty India, RTC Properties India, Goldmine Agro, Tower Infotech, Chakra Infrastructure, Gold Field Agro, iCore E-Service, MPS Aqua Marine Products, MPS Greenery Developers, Prayag Infotech Hi-Rise, Prayag Infra Realtors, Rahul Hi-Rise, Ramel Industries and URO Agro India.

Capital market regulator Securities and Exchange Board of India (Sebi) and the Registrar of Companies have initiated action against some of these companies. Sources added that Sebi has zeroed in on three more firms in the state. One of them has close links with soccer at the national level and has invested in film infrastructure.

Another firm is in the two-wheeler assembling business and has its headquarters in Moulali, Kolkata, while the third one has interest in education, hotels and leather goods.

“Sebi is trying to do its bit but our scope is limited under existing laws. Like Saradha Realty, we issued a showcause notice in December 2011 but they did not listen to us,” sources added. Incidentally, the capital market regulator took action against Sun Plant Agro, Rose Valley Real Estate and MPS Greenery Developers and PACL India, but all the cases are pending in different courts.