Chit funds, media and TMC

Discussion in 'Politics & Society' started by Sabir, Apr 25, 2013.

  1. Sabir

    Sabir DFI TEAM Senior Member

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    Melt down of Sarada Group in Kolkata has created an uproar in Bengal. Mamata banerjee has promised to created a relief fund by taxing the smokers to compensate those who lost money. However she has put the blame on CPI(M) and Congress completely ignoring involvement of her own men in the scam. TMC leaders like madan Mitra (transport minister), Srijoy basu(MP), Kunal Ghosh (MP) are said to have milked Sarada Group a lot. On the otherhand the King of Chit Fund fraud K D Singh (owner of Alchemist which was Tubro Infotech earlier) is a TMC MP in Rajya Sabha. Many of these Chit funds owned news channels and news papers and surprising fact is that almost al of them are known for their pro-TMC stance. The huge investment TMC made during last election was largely financed by milking these companies. No wonder Didi is more interested in introducing a tax rather than recovering money from these companies or her men.

    PS: the circus will be more interesting if CBI probe is ordered. Mamata has withdrawn support from UPA few manths back. Hope Cong will take revenge through CBI.
     
    Last edited: Apr 25, 2013
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  3. Sabir

    Sabir DFI TEAM Senior Member

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  4. anoop_mig25

    anoop_mig25 Senior Member Senior Member

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    I donot understand one thing. it is been news that finance minister wife has involvement in persent bengal chit fund case.if it is true then why isn`t BJP attacking finance minister .I failed to understand their silence on it .on the other hand on drop of hat they attack PM.


    can cm be stooped from granting such relief.I mean investor in such case should have been aware of risk.even if they where aware GoV of the day isn`t bound to pay money. Money should be recoverd through Sarada Group propertities .
    @sayareakd what d u say.does this decision of CM can be challenge in court

    third how why does GOV(whether central or state) allows such scheme. i heard such schemes are running in kerala too. donot know whether its ruining in other state or not
     
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  5. sayareakd

    sayareakd Moderator Moderator

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    anoop just file PIL in WB HC and ask why are public funds are used for this ? they are investors if profit would have come, is the govt got more tax then the normal rate ? if not then no need to give then any relief. BTW looks like didi want to save herself that is why such a scheme at the expense of public fund. :tsk:
     
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  6. Singh

    Singh Phat Cat Administrator

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    IF KD Singh's company winds up who will deliver my Chicken ?
    @Sabir da, please tell us more about KD Singh.
     
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  7. Sabir

    Sabir DFI TEAM Senior Member

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    There are several cases against K D Singh. He has several registered companies which are just on paper. Many were listed in stock exchange as well (you can understand the reason) but most of them have been barred by SEBI. Almost a decade ago his company 'Tubro Infotech' raised several hundred crore from market in similar fashion and vanished. In 2004, Tubro Infotech became Alchemist. During the last election he was arrested with cash (I forgot the amount). it is rumoured he had given one crore per candidate during State Assembly Election to TMC fund; later became a MP in Rajya Sabha on TMC ticket. Nowadays he is lecturing about fighting against corruption. :D
     
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  8. Sabir

    Sabir DFI TEAM Senior Member

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    BJP has sane people. Nalini Chidamberam is a renowned advocate and she received 1 cr fees from Sarada Group during a period of one and half year (according to Sudipto Sen's claim). So she has a way out. Even ex-NDA minister Jethmalani represented Harshad Mehta in Court.

    Mamata is a joker. First, imposing tax doesnt mean collection. Her step will just increase smuggling of tobacco products from Bihar, Jharkhand and Orissa. Second, Gov will earn that amount (if possible at all) over the year(s). So automatically there will be delay. Unfortunately, there will not be enough fund even after selling all properties of the Sarada group. Because only a fraction of collection has been invested in real venture (as an eye wash). In a rough calculation , if a chit fund like Sarada Group collects Rs 100, it pays around Rs 30-40 to the agents. Around Rs 20 to political parties, leaders. Then there are show offs (like donating Rs 3 cr to build a temple or gifting a nice-looking employee some flats or sponsoring reality shows) and personal expenses. Ultimately , it is promising to give Rs 400 in seven years when it has Rs 30 in hand to utilise. In initial years it pays interests to old clients from new investment. But, when the growth of client base stops growing, there is no way out.These types of companies or openned with the sole motive to run away with the money. The concerned amount is somewhere between 20k crore to 100k crore. What 500 crore will do?

    There is no reason to believe that government doesnt know about them. But, the huge financial backing they gets from these companies keeps its mouth shut. For an example, during last election TMC got huge support from Sarada group and other companies. Their channels and dailies act as TMC mouthpieces. Sarada owner once bought a painting by mamata banerjee for 1.86 cr. There is no prize to guess why.

    Most of the clients are from lower and lower middle class who dont have much knowledge about financial world. they are easily fooled by the show-offs made by these companies. (Both our maids have put their hard earned money in such companies and now moving with pale faces.)
     
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  9. Sabir

    Sabir DFI TEAM Senior Member

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    from today's news paper-

    Trinamool runs aground: It is foundering on Bengal’s cheat funds and could well sink with them

    The collapse of Saradha Group, promoted by Sudipta Sen, is the greatest threat yet to Mamata Banerjee's Trinamool Congress regime in Bengal. It could also imperil the finances of millions of people in Bengal, Assam, Jharkhand, Bihar, Orissa and eastern Uttar Pradesh.

    Trinamool's blatant association with the bigwigs of Saradha, which raised vast amounts of money from poor people before collapsing, is a potentially fatal political body blow. Saradha could drag many more Ponzi schemes down with it.

    Saradha started operations in Bengal sometime in the mid-2000s. By 2009, when the Trinamool was part of the UPA II regime in Delhi, it had started expanding its vast Ponzi scheme, across Bengal and its neighbouring states. The idea was simple: engage unemployed people to act as agents of the company. These agents would attract depositors by promising fabulous returns which no proper bank or financial institution could hope to match. To burnish his credibility and win political support, Sen launched a raft of newspapers in English, Urdu and Bangla. He also bought into several television channels.

    Sen also started wooing the top brass of Trinamool and other parties assiduously. His ambitions dovetailed with those of Trinamool, which dreamt of expanding into ethnically-diverse lower Assam. In a signed confession to the CBI, Sen says that he paid Assam's minister of education and health, Himanta Biswa Sarma, Rs 3 crore in cash for unknown favours.

    Very soon, Trinamool MP Shatabdi Roy, a former film actress, became the brand ambassador of the company. Kunal Ghosh, a journalist, was appointed as the media CEO of the company. Mamata soon appointed Ghosh as a Trinamool MP to the Rajya Sabha. After the Trinamool swept to power in Bengal in 2011, Sen roped in Madan Mitra, the minister of transport and sports, to head the association of Saradha's agents. And now, Trinamool MP Mukul Roy is trying to salvage Saradha's media operations.

    Saradha's agents openly flouted their proximity to the Trinamool administration. To many deluded souls, it seemed as if their deposits with Saradha were guaranteed by Bengal's Mamata government. Then everything went bust. In mid-April, Saradha sacked around 1,200 journalists working for its newspapers and TV channels. By then, Sen had quietly left the state with two other accomplices.

    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 penalises Ponzi schemes.

    It won't wash. There is just too much footage of the chief minister and her cronies hobnobbing with the Saradha brass. In many villages and mofussil towns, local Trinamool hotshots doubled up as Saradha agents. Mamata herself presided over functions where ambulances, two wheelers and bicycles carrying Saradha logos were distributed in rural Bengal.

    In the public imagination, Saradha and Trinamool are inseparable: it's as if the Mamata administration itself has decamped with the lifetime savings of millions of poor people. A conservative estimate of the money siphoned off by the fund ranges from Rs 1,200 crore to Rs 1,700 crore. This newspaper reported recently that similar funds have mushroomed across Bengal from 2005-06. It reckoned that between them, they had raised around Rs 17,000 crore, mostly from poor people who don't know better.

    The central government is investigating several Bengal chit fund companies. These include Rose Valley, RTC, Chakra Infrastructure, Tower Infotech, ICore E-Service, MPS, Prayag, Rahul, Sunshine, Uro, Vibgyor and Waris.

    It is also probing a company called Alchemist Infra. This company belongs to Kanwar Deep Singh, who was made a Trinamool Rajya Sabha MP last year. By 2011, Alchemist allegedly collected around Rs 1,100 crore from people, promising them residential property or debentures, without actually owning such assets. Isn't it amazing how many Trinamool hotshots are associated with Ponzi schemes?

    Saradha's collapse has triggered panic among folks who have invested with other funds as well. One fund called Sunmarg is now under siege from aggrieved investors. Expect to see a run on these funds. Sahara, among the largest non-bank finance companies in India, is in legal trouble. Saradha's collapse could also drive its investors towards the exit.

    Sen and his companions have been arrested, but even after liquidating all his assets, it is unlikely that his investors can be paid off. Funds were splurged on media and a lot has allegedly gone into the coffers of political leaders.

    History provides a bleak outlook. A court-assisted panel is still trying to identify and reimburse the investors of Sanchayani, a Bengal chit that collapsed around 20 years ago. No investor of Sanchayita, which folded in 1980, ever got his money back.

    For a while, Trinamool's ties with Saradha benefited both. Sen's businesses grew, Trinamool got good press from the chit fund media and politicians allegedly got hefty payoffs. Now that the story has unraveled, there is no easy exit for Sen, his Trinamool cronies and the chit fund crooks of eastern India.

    Trinamool runs aground: It is foundering on Bengal’s cheat funds and could well sink with them - The Times of India
     
  10. pmaitra

    pmaitra Moderator Moderator

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    What is a Ponzi Scam - err - Scheme?

    [​IMG]
    1910 police mugshot of Charles Ponzi, the namesake of the scheme

    Source: Ponzi scheme - Wikipedia, the free encyclopedia

    [HR][/HR]

     
  11. anoop_mig25

    anoop_mig25 Senior Member Senior Member

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    I wonder why it news broke out now.there are news doing rounds that TMC has developed cold feet for forthcoming panchyat election.There was also a statement that congress and left could once again join hand post 2014 election (yes to keep communal party out of delhi powers)

    on the other congrts to mamta she has enterd the clud of parties run by corrupts.one more go done.

    so all this was to broke TMC confideance
     
  12. Ray

    Ray The Chairman Defence Professionals Moderator

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    The noose is tightening on all political parties which have effective political presence, like the TMC, CPM and Congress.

    I enjoyed how Mr Adjective, Smug as a Bedbug and filibuster Abhishek Manu Singhvi was made most uncomfortable by Derek O/ Brien of the TMC during an NDTV Debate!

    No one is clean!
     
  13. SLASH

    SLASH Senior Member Senior Member

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    Chit fund give good amount of profit at the beginning however the return on investment is not tax free. Also these chit funds are high risk capital investment. They give such good returns because the fund manager uses the money in high risk market. Small time investors should rather invest their money in government bonds, some of which provide tax free interest rates of upto 8%. Most of the people invested in Sharda Group are small investors from the middle class. If they would invested in government bonds their money would have been in safer hands and guaranteed with minimum risk.
     
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  14. arnabmit

    arnabmit Homo Communis Indus Senior Member

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  15. Sabir

    Sabir DFI TEAM Senior Member

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    @ Arnab....

    The caption in the first picture is wrong. There is no Sudipto Sen in the picture. It was inaugurated by Buddadev Bhattachariya in 2007. It was a joint venture of Xenitis Group (of India), along with Guangzhou Motors Company of China. It was basically an assembling unit of Chinese motorbikes. But it was not successful and Santanu Ghosh , the owner of Xenitis (in the picture) sold it to Sarada Group in 2010 which the group used as a dummy plant to dupe investors. Dont know who is making such caption and why? It is surely being circulated by pro-TMC groups to counter recent controversy.

    http://www.thehindubusinessline.com...owheeler-project-takes-off/article1649645.ece

    The Sikh person in the second person is a known coal mafia Kaleh Singh who donated money for construction of a college. I doubt the CM did know him. The SP of the district said he had never seen him face to face before so he could not stop him. Same was the explanation of Buddababu's secretary. However, the amount one lakh was donated actually on behalf of Arjun Dev Gurudwara committee of which Kaleh Singh was the president. Now, does the photo prove any nexus between the ex-CM and the mafia?

    TaraTV

    It is impossble to believe Sarada Group or other chit funds did not have the backing of CPI(M) at least in local level before they start shifted their loyalty to TMC anticipating the change in power. But, It is equally impossible to believe Buddadev Bhattacharya had any link with them. In last few years activities of these companies have increased many folds. One after one news channel popped up. If you checked the list of the news papers sanctioned for the libraries by the State Government few months back (where most of the biggies were not named)- you can find all these papers owned by these companies. Even they put a lot of money in Kolkata clubs also. Yesterday Subrata Bhattacharya claimed Mohun bagan paid 2 cr to AIFF with the help of Sarada Group.
     
    Last edited: Apr 27, 2013
  16. arnabmit

    arnabmit Homo Communis Indus Senior Member

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    Might be... saw it on FB, so posted here.

    All who were involved need to burn.

    I remember a year ago used to feel proud that so many "group of companies" are coming up in WB... WB just might be on its way to recovery...

    Now we all know what these companies really are...
     
    Last edited: Apr 27, 2013
  17. Sabir

    Sabir DFI TEAM Senior Member

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    We are dead brother. That is fact. I personally never liked the idiotic ideology of CPI (M) especially that of Prakash Karat and Co. But I respect Buddababu a lot. He worked hard without bothering short term benefit. Unfortuately is party likes to stay in Jurassic age. Now we have no options. TMC is nothing without Mamata aart a nd Mamata is good for nothing. CPI(M) doesnt seem to change, attack on Amit Mitra proved that. There are couple of good leaders in BJP like Tathagata Babu or Asim Ghosh. But over all, WB BJP is a joke.
     
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  18. arnabmit

    arnabmit Homo Communis Indus Senior Member

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    Yeah... Its either CPIM hegemony or TMC idiocy and revenge... Moreover hearing a lot of RSS presence in south & north 24pgns and mednipur recently.
     
  19. Sabir

    Sabir DFI TEAM Senior Member

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    This report was published in Oct 2012

    The Hidden Hand Why Mamata Divorced UPA

    There is no dearth of those who said that K. D. Singh is the leader of the ‘chit fund pack’ in Trinamool Congress. His Alchemist, through alleged “back-door” acquisition of many Bengal chit funds particularly those considered close to Trinamool links, has become a power to reckon with. There has been no serious enquiry into this “chit fund business” though the Central Government declared in Parliament that it would do so.

    By DA Special Investigation Team

    Now that Trinamool Congress leader Mamata Banerjee has finally divorced the UPA II government, the question is why she did it. Sources say that the real reason for her pullout from the Manmohan Singh government is quite different from her stated sympathy for the common man.

    Her own party leaders say, on condition of strict anonymity, that the “real problem” between her and the UPA government came to a head on August 26, 2012. On that day, R. P. N. Singh, Minister of State for Corporate Affairs, said that investigation was under way into the affairs of 87 chit funds operating under the garb of Multi-Level Marketing (MLM) companies. (see the Box for details) It is alleged by her opposnent that Ms Bannerjee, in her twin capacity of West Bengal Chief Minister and supreme leader of TMC, UPA II’s second largest partner after Congress, has been using her clout to protect from investigation the chit funds in her state. Though there is no evidence on the ground to establish close nexus of these chit funds with her. It is said that the list of 87 chit funds under scanner includes those very close to her.

    The TMC was worried by R. P. N. Singh’s announcement that the Serious Fraud Investigation Office (SFIO), which has been given responsibility of the investigation, was now pushing for a Central Regulatory Authority for strict implementation of Prize Chit and Money Circulation Schemes (Banning) Act 1978. West Bengal, a state rated high for small savings, has become a happy hunting ground of chit funds that dupe ordinary savers by offering them high returns, and then disappearing one fine morning. It is the state government’s responsibility to enforce the PCMCS Act, but police under the Trinamool government is notorious for looking the other way when complaints come in.

    Alchemist and Saradha

    Of the chit funds favoured by Bannerjee, the weightiest is Alchemist, owned by Trinamool Rajya Sabha member K. D. Singh, it is alleged by her opponents. It is said is some knowledgeable quarters that Alchemist has obtained controlling stakes in Saradha through some of his other companies. It is no secret that Saradha is close to the Chief Minister. After Bannerjee came to power in West Bengal, Saradha began acquiring an increasingly high profile.

    Saradha first established a close relation with ‘Pratidin,’ a loss-making Bengali daily. Last year, after Saradha acquired sufficient control over Pratidin, Srinjoy Bose, its founder-owner’s son, got elected to Rajya Sabha as Trinamool Congress candidate. Though Pratidin remains under Bose, it is getting booster from certain sources connected to chit fund companies. Soon thereafter, Kunal Ghosh, Saradha agent wearing double hat as executive editor of ‘Pratidin’ and chief executive of Saradha’s media-related businesses, also entered the Rajya Sabha with “didi’s” blessings. By then Saradha had established a close financial relationship with two old Kolkata papers, “Sanmarg” in Hindi, and “Akhbar-E-Mashriq” in Urdu. Their controllers, Vivek Gupta of “Sanmarg” and Nadimul Haque of the “Mashriq”, also found their way into the Rajya Sabha as Trinamool members.

    The ‘chit fund rags’ may have influence and control over media houses running newspapers and TV channels enjoying at least some protection from possible raids by law enforcement agencies.

    The Chit Fund Pack

    K. D. Singh’s sudden rise in the TMC is attributed to his contribution to these ‘chit fund pack’ of the party in West Bengal. His Alchemist, through alleged acquisition of many Bengal chit funds, and because of Trinamool links, has become a power to reckon with. There has been no serious enquiry into his source of fund and its nature of deployment. Now that the Central Government may undertake one, the truth will be out. Efforts to get K D Singh failed.

    He has a chicken retail chain called Republic of Chicken. Yet he has become a member of the National Meat and Poultry Processing Board under the Food Processing Ministry, thanks to the Union Tourism Minister, Subodh Kant Sahai, who is the least bid bothered about such conflict of interest. Moreover, both Sahai and Singh are MPs from Jharkhand and both shared their past in the shadowy Jharkhand Mukti Morcha (JMM) party.

    It was Congress MP from Malda (South) A. H. Chaudhury (brother of the late A. B. A. Ghani Khan Chaudhury) who was the first to blow whistle on the chit funds. When Ghosh’s name was first heard as a probable Trinamool candidate for Rajya Sabha, Chaudhury wrote to Prime Minister Manmohan Singh cautioning him about Ghosh being a chit fund agent and the anti-people activities of these funds. There were media reports that Bannerjee had then interceded on Ghosh’s behalf by calling Ahmad Patel, political secretary to UPA Chairperson Sonia Gandhi, and seeking his help. It was because of her clout that Prime Minister desisted from acting on Chaudhury’s letter officially.

    Voices Against Chit Funds

    Soon, Somen Mitra, this time a Trinamool MP and a senior leader, wrote to the Prime Minister saying “these chit funds are collecting deposits mostly from guileless rural and semi-urban public…luring them with the promise of sky-high return”. He further wrote that “these chit funds do prosper with patronage of politicians who have even helped some chit-fund owners to enter the illustrious House of Parliament”. And now Sadhan Pande, the state’s Consumer Affairs Minister, has written to Union Corporate Affairs Minister Veerappa Moily to bring under control “unlisted companies…(which) are raising funds without any proper scrutiny”.

    People involved in microfinance, and are thus conversant with the state’s money market at the lower level, estimate that chit funds mobilize at least Rs 60,000 crore annually, and it is growing. If Banerjee is so concerned about the poor that she’d pull down the government at the Centre rather than allowing FDI in multi-product retail, she should first free herself from the clutches of chit fund operators. For they can make the savings of poor men in her state vanish.

    http://www.dayafterindia.com/magz_detail_news.php?id=1854
     
  20. shom

    shom Regular Member

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    Already a PIL going on in HC,, no more can be filed on same issue as it comes under Res Subjudice
     
  21. shom

    shom Regular Member

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    While the whole country is raising voice on "quit Smoking" Miss Mamta Banerjee says "Dum Maro Dum",, she was a lousy road politician,, and she will never raise from that.
     
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