After Saradha, more skeletons emerge from Kolkata backyard

Saradha is just the tip of an ice berg that may have already sunk Rs 4,000 crore of poor investors’ money.

According to a report in the Indian Express, the Securities and Exchange Board of India, which woke up to the reality of late, has asked the West Bengal government to launch immediate probe against five more such schemes in the state, which may have mopped up Rs 4,000 crore of investor money.

One of the companies named in the communication is Rose Valley Group with diversified interests in real estate, hotels and resorts, travel, media and insurance.

[caption id=“attachment_726679” align=“alignleft” width=“380”] One of the companies named in the communication is Rose Valley Group with diversified interests in real estate, hotels and resorts, travel, media and insurance.PTI[/caption]

According to the report, a team of Sebi officials which visited the company’s offices for an inspection was not allowed in. Earlier, the company had reportedly denied entry to a group of KPMG officials, mandated by Sebi to do a forensic audit.

However, the company has advertised that it will repay all depositors, and seeking investors’ “trust in the company’s “asset based” operations”.

Whatever the reality is, it is surprising that despite such brazen acts by the company, there has not been any action against it yet.

However, Sebi claims it has been more proactive about the Ponzi schemes that have mushroomed in West Bengal.

According to the Sebi officials quoted in the report, the regulator had held 12 meetings with RBI officials and Bengal finance department to discuss the chit funds issue.

Read the full report here .