Millions of small investors in eastern India have lost their life savings with the collapse of the politically well-wired Saradha Group, whose boss, Sudipta Sen, now behind bars and with more than US$800 million having disappeared, one of the biggest scams in Indian history.
It is one that appears directly related to the failures of India’s financial and regulatory agencies. Beyond that, Saradha Group’s demise is an archetypal story of cheating hundreds of thousands of poor families, offering unbelievable returns up to 30 percent annually against deposits in what appears to have been a classic Ponzi scheme, built partly on the cachet that rubbed off of high-level officials recruited by Sen.
Arrested with the group boss, for instance, were a dozen high profile individuals including Saradha’s media wing boss Kunal Ghosh, former Bengal police chief Rajat Majumdar, East Bengal football club official Debabrata Sarkar, businessman Sandhir Agarwal, popular Assamese singer Sadananda Gogoi and others. Shankar Barua,the former director general of the Assam police, committed suicide after being suspected as a beneficiary. Raids have been carried out in the residences of Himanta Biswa Sarma, a former Assam health and education minister and the office of three satellite news channels.
The CBI suspects that Sadananda introduced Sen to former Assam minister Dr Sarma and State police chief Barua. Sadananda was arrested on Sept. 12. Full story...
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It is one that appears directly related to the failures of India’s financial and regulatory agencies. Beyond that, Saradha Group’s demise is an archetypal story of cheating hundreds of thousands of poor families, offering unbelievable returns up to 30 percent annually against deposits in what appears to have been a classic Ponzi scheme, built partly on the cachet that rubbed off of high-level officials recruited by Sen.
Arrested with the group boss, for instance, were a dozen high profile individuals including Saradha’s media wing boss Kunal Ghosh, former Bengal police chief Rajat Majumdar, East Bengal football club official Debabrata Sarkar, businessman Sandhir Agarwal, popular Assamese singer Sadananda Gogoi and others. Shankar Barua,the former director general of the Assam police, committed suicide after being suspected as a beneficiary. Raids have been carried out in the residences of Himanta Biswa Sarma, a former Assam health and education minister and the office of three satellite news channels.
The CBI suspects that Sadananda introduced Sen to former Assam minister Dr Sarma and State police chief Barua. Sadananda was arrested on Sept. 12. Full story...
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