......."The internal inquiry report has been submitted. Deloitte has also submitted its interim report. No actual transactions (violating anti-money laundering rules) have been found to have taken place,"............
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Saturday, April 27, 2013
In Bengal's grey 'money market', Saradha is just one
..........Cheating of investors falls under one of the following laws : a) ‘vanishing’ after raising money through public offers; b) illegal collection of deposits in violation of Section 58A of the Companies Act, 1956; c) floating sham CIS in violation of SEBI Act; d) collecting money from public by posing as ‘Non-Banking Financial Companies (NBFCs) in violation of RBI Act; e) and resorting to ‘Ponzy’ or money circulation schemes under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978...........
Government yet to crackdown on multi-level marketing firms
......The draft was first prepared with consultation of RBI in 2005. It was approved by the state cabinet and was sent to the Centre for approval. The Centre sent it back to the state with some recommendations and ever since the home department is sitting on it. The government showed "interest" after the Gold Sukh case but failed to actually work on the pending matter.........
Mumbai Police steps up vigil on chit funds, ponzi firms
...........The EOW has updated the list of such units functioning in the city and collected information from the Reserve Bank of India and the Securities and Exchange Board of India. Besides, the state government has asked the police to closely watch the present developments and take punitive action against such companies after they receive complaints, to protect the interest of investors..............
While they were sleeping
..........The plan was to encourage middle-class investors to branch out to other, more attractive financial sector investments ranging from equity to pure play debt products like pension schemes. The remedy, instead, let fraud organisations like Saradha and others prosper. One of the elements of the government plan was to dismantle the National Savings Organisation (NSO), which ran all the state-run small savings schemes. The option was for the states to run them as they saw fit. The states except West Bengal saw no need to advertise and more significantly pay high agency commissions to mobilise money they did not need..........
Saradha scam: 13 co-op banks under RBI scanner
............“Be it negligence on part of the authorities in verifying credentials of account holders or their proximity to group officials, we are determined to take stringent action against staff members who are found guilty,” said a senior RBI official.............
RBI posers to govt went unanswered
......With the RBI receiving several such complaints, it wrote letters to the state government in January this year as well as February urging it to take action against shady chit fund companies operating in Bengal. The letters, which were sent to the office of chief secretary as well as Chief Minister's Office state that the RBI was receiving several complaints from people regrading chit fund companies operating in the state. As the responsibility for prosecuting these firms for any violation of law is with the state government, the state government should take action against them, it added. The government did not reply to any of the two letters of the RBI...........
Something to bank on
................ But whatever the constitutional division of powers between state and Centre, the Reserve Bank of India cannot run away from its duty to save the country from the financial equivalent of the law of the jungle. Since the Securities and Exchange Board of India had earlier acted against some companies that run dubious deposit schemes, it can’t shirk the responsibility either. But there are strong suggestions that West Bengal’s political establishment, the police who are its handmaidens (as they are of any party in power) and even the law courts frustrate Sebi moves to protect ordinary citizens...........
Banking on lies
..............To his agents, Sen had said he has lost a great deal of money in a real-estate project. To some other agents, Sen had said he was forced to give Rs 1,200 crore to Reserve Bank of India and Rs 600 crore to Securities Exchange Board of India to keep his business afloat, which had eroded all his wealth................
Can legal measures root out chit fund frauds? - Yes
............Such schemes will not always come under the express domain of any regulatory authority or statute. Given the popularity of such money-making schemes, our legal framework must keep pace with such hybrid investment arrangements and methods of raising funds from the public.
Can legal measures root out chit fund frauds? - No
........Isn’t all this enough for Saradha to be booked under the existing laws? This only goes to show that the best laws can fall by the wayside in the absence of political will to implement them. That political personages lend legitimacy to dubious activities only makes implementation of the law that much more difficult.
Didi wants Centre to pay Rs 500 crore for its ‘sins’
...."The Left government should have made the legislation in the 1980s when Sanchayita (a chit fund company) went bust leaving thousands of people pauper. But the chit fund mess was allowed to grow just because of evil designs of the Marxist government as well as the casual attitude of the central government. The centre cannot shirk its responsibility. The SEBI and RBI are in their hands. I will ask Rs 500 crore from them,"..............
Mamata ‘smoke to help’ remark earns ridicule
......."Smoking is injurious to health. Tobacco tax to mop up revenue this way means you assume that people will smoke more. This may create revenue for the state. But if citizens smoke more to mop up revenue for the state, the state will have to pay for their health. This is a dichotomy. This must by Mamata's mantra for the youth. I do not understand the philosophy behind it,"...........
Read - IE
Chit fund swindle: Is there no monitoring?
........It is extraordinary that it’s still so easy to run such a scam in the era of Sebi and RBI regulations and monitoring, and when financial sector “inclusion” is the mantra of the finance minister and Prime Minister. It is hard to believe these worthy institutions could be oblivious that swindlers and profiteers had built financial empires in flagrant disregard of every imaginable rule or guideline............
UBI had warned Bengal of ponzi scheme menace
...........Asked if there should be more stringent know your customer (KYC) norms implemented by the Reserve Bank of India (RBI), Sanjay Arya, executive director, UBI said, such companies cannot be prevented from using the banks. He said, “The current RBI norms are strong enough, but none of these measures can check these companies. All these chit funds have their KYC documents in place, it is not an issue with them.
Alarmed Bihar cracks down on chit fund companies
Patna: Alarmed at the big fraud committed to gullible investors by a chit fund company, Saradha group, in the neighbouring West Bengal, the state government in Bihar has issued an alert, advising the masses against falling into the traps of the non-banking companies promising hefty monetary returns. The government even announced to tighten nooses around these companies which have mushroomed up in recent years.............
The Mamata Banerjee story is over...
.........In December 2012, Reserve Bank of India (RBI) Governor D Subbarao publicly told the state government that it needed to be vigilant on the operations of chit fund companies. "Money circulation schemes are banned under the Prize Chit and Money Circulation Schemes (Banning) Act, 1978, and the respective state governments have the power to take action against people involved in such schemes," he said, asking the state government to intervene.
No one in the state did anything...............
Big Peddlers But Small Change…
.............Confronted with this swindlers’ list, naming many of her own, you would expect TMC supremo Mamata di – whose infamous Kolaveri di has earlier fallen on a hapless professor fond of cartoons, on a farmer raising an inconvenient truth, and so on – to hit the Writer’s Building roof. Right? Wrong. And here’s why – Didi has apparently discovered the joys of peddling too. When the Saradha ruin surfaced, Mamata first tried to sell her usual Left-plus-Centre conspiracy theories to give TMC a clean chit. When no one bought this, she switched wares and promised to refund depositors Rs 500 crores. But before you swoon at her generosity, note – this money will come from tax-payers, not the government seizing Saradha assets, still linked to powerful agents of change. So it’s the Peter principle – robbing Peter to pay Paul once again...........
Trinamool runs aground on cheat funds
.....Soon, hordes of depositors from all over the state descended on Kolkata to ask for their money back, from an already-bankrupt government. Some despairing depositors killed themselves. Thousands of agents are reluctant to return home, fearing that they could be lynched by the people whose deposits they had taken. Mamata has tried to wriggle out of her association with Saradha. She has promised to implement a law which the Left had tried to do earlier, which penalizes Ponzi schemes.............
Investors throng Saradha offices, NBFCs for return
.....The much publicized chit fund scam of Saradha Group companies in Kolkata and Assam, has evoked widespread outburst among the depositors in urban and rural Jharkhand. The people who have invested their money have been thronging in the offices of the chit fund companies and non-banking financial companies ( NBFCs) to get back their deposits......
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