Thursday, July 18, 2013

‘Funding’ corruption

Somaiya alleges massive chit fund fraud in state with political patronage

Former BJP MP Kirit Somaiya yesterday alleged of a massive chit fund scam running into Rs.10,000 crores involving 10 lakh small time investors and 100 odd Ponzi companies brewing in the state.

Speaking to newspersons at Mantralaya, the BJP leader alleged that two years after the Speak Asia scam came to light the government has not woken up to repeated complaints. He added that such chit funds by Ponzi companies were not possible without the tacit support of those in power.

The former BJP MP alleged that NCP Minister for Tribal Development had inaugurated party worker Baba Gaikwad’s agent office of Ponzi firm Sai Prasad Group at Pimpri-Chinchwad. He said that in one such case Pune ACB trapped local police trying to settle a case of Samruddhi Jivan Foods a Ponzi company from Jalgaon for Rs.65 lakhs. Somaiya stated that despite giving documents and list of 31 such companies, five of whom which are headquartered in Maharashtra six months ago but no action was taken.

Accusing the Mumbai EOW of cover-up deals, he wanted to know why the probe was being stalled.

Somaiya wanted the government to issue warning to owners of all these companies not to indulge in chit fund activities, caution the small investors against investing in such companies. He further demanded that the government immediately set up task force of market regulators and investigators like RBI, Sebi, Company Affairs, Enforcement Directorate, Income Tax and EOW to investigate Ponzi companies which are promising 20 to 25 percent returns on investments in just a year.

The former BJP MP argued that after the Speak Asia scam surfaced some of the 100 odd Ponzi companies saw their investment capital grow from Rs.5 crores to Rs.500 crores. He stated that in March last the Centre informed the Lok Sabha that there were no Ponzi companies operating in Maharashtra.

Somaiya alleged that such companies could not be flourishing in the state without political patronage.
Tuesday, April 30, 2013
By Prashant Hamine

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