 "Saradha scam: Are other chit fund companies doomed to fail?")
While Saradha chit-fund company might be the only group in Bengal who went bust there are several companies who are waiting to wrap up their operations just like the Saradha Group. This is after the Serious Fraud Investigation Office had sent notice to around 57 companies who have also been feeding off the small savings of poor people in Bengal and eastern India.
Dozens of companies are supposed to have raised 20000 crores in Bengal itself in the last few years. Prominent among them are two companies - Rose Valley and MPS - who have business interests like resorts, real estate and agro business - similar to the likes of the Saradha group.
[caption id=“attachment_734427” align=“alignleft” width=“380”]  Rose Valley is another company that is also into chit fund business like the Saradha group. IBNLive. [/caption]
Rose Valley Chairman Gautam Kundu wrote to Mamata Banerjee on 23rd April seeking protection as his group might be targeted by angry protestors who have been demanding a probe into the chit fund companies.
The company claims that it holds 3000 crore in bank balances but how it mobilised so much money from its customers is not yet known.
However, Rose Valley has put up a brave front despite the doom that has befallen the entire small and medium savings scheme industry in eastern India. Shibamoy Dutta, MD of Rose Valley told CNN-IBN, “I assure all the customers that we are in a very sound position. My request is that you should not panic.”
SEBI had also issued a seize and desist order to another company - MPS Greenery Developers Ltd - who were also into the chit fund business. However, the lower courts had stayed the SEBI’s orders.
However, this time things might be different because of a decisive move by the SFIO to probe into so many companies that are into allegedly fraudulent practices in the state and beyond.
(inputs from CNN-IBN)
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