This Article is From Sep 30, 2013

Mamata Banerjee distributes compensation to Saradha chit fund scam victims

Kolkata: West Bengal Chief Minister Mamata Banerjee distributed compensation cheques to 929 investors who have been duped after investing in the ponzi schemes of the scam-tainted Saradha Group.

The beneficiaries had deposited up to Rs.10,000 in the schemes, till the company went bust and closed shop across the state unable to repay the investors who had been lured by the promise of high returns.

Lakhs of people, mainly poor people in villages and small towns, have been affected by the Saradha scam. Several investors and agents had committed suicides.

The chief minister appealed to people not to invest their funds with any chit fund company. She said people should instead save money at home if they did not have any alternative.

The beneficiaries were chosen as per recommendations of the Shyamal Sen Commission, constituted by the state government to probe the scam and recommend ways of returning money to the depositors.

Calling the decision to pay compensation to the victims as 'historic', Justice Sen said 1,04,000 more depositors would be indemnified before the Durga Puja next week.

Two lakh more investors would get their money back after Diwali in November.

The government has set aside Rs.50 crore for indemnifying the depositors upto Diwali.

Justice Sen said 17.39 lakh depositors have applied to the commission, of which the panel had heard 8,000 so far.

Later, in a post on social networking site Facebook, Ms Banerjee said, "In the last 35 years, many people have been cheated by the so-called 'chit fund companies'. Have we ever heard of anything like returning money to the people who were cheated?"

"We do not want to deprive the poor people. Our sincere efforts are always there to help the poor people in distress. Central Government agencies, like SEBI, RBI, should also ensure that poor people are not cheated," she said.

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