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The apex court had ordered the central probe agency to investigate the scam in March this year. Photo: Mint
The apex court had ordered the central probe agency to investigate the scam in March this year. Photo: Mint

Saradha scam probe: Supreme Court seeks response from Sebi, CBI

Court also asked the centre to file an affidavit on the number of states which have notified rules on regulating collective investment schemes, within four weeks

New Delhi: Securities and Exchange Board of India (Sebi) and the Central Bureau of Investigation (CBI) on Monday told the Supreme Court that they will submit within four weeks their respective reports on the probe into the multi-crore Saradha chit fund scam.

The court also asked the centre to file an affidavit on the number of states which have notified rules on regulating collective investment schemes (CIS) within four weeks. In addition, Sebi was directed to file an affidavit stating action taken against illegal CIS in different states.

A bench headed by Chief Justice T.S. Thakur was hearing a plea by a Kolkata-based non-government organization, Humanity Salt Lake, which alleged that the court-directed probe into the scam was not progressing properly due to the lack of a regulatory mechanism.

The apex court had ordered the central probe agency to investigate the scam in March this year. Various companies have allegedly embezzled around 300 billion from more than a million people in West Bengal, Odisha, Bihar, Assam and Tripura under the scam.

Appearing for the CBI, additional solicitor general Maninder Singh said that the Serious Fraud Investigation Office in the ministry of corporate affairs (MCA) has also prepared a report on the scam, which would be submitted before the court.

Apart from this, Sebi informed the court that there were certain loopholes in the regulatory framework which were being exploited under various collective investment schemes and that it was trying to address that issue.

The court ordered probe had run into trouble as CBI had complained of lack of manpower to conduct the probe and accused the West Bengal police of not cooperating.

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