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This article was first published 10 years ago  » Business » Apex court directs CBI probe into chit fund scams

Apex court directs CBI probe into chit fund scams

Source: PTI
May 09, 2014 15:41 IST
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CBIThe Supreme Court on Friday directed a Central Bureau of Investigation’s probe in multi-crore chit fund scams in West Bengal, Odisha and Assam in which various companies, including Saradha, are allegedly involved.

A bench headed by Justice T S Thakur said that the scams have inter-state ramification and directed the investigation be handed over to the central agency from the state authorities.

It also asked the Enforcement Directorate to conduct the probe expeditiously against the accused companies.

It however, refused to constitute

a committee for the time being to monitor the CBI probe in the scams.

The bench directed the state authorities to cooperate with the CBI in the probe and provide all details to the agency.

The court passed the order on public interest litigations seeking a stop to the entire chit funds business in the country and also a restraint on further collection of funds from investors as an immediate remedial step.

The petitioners had said they have no faith in the police authorities.

They had alleged that the proceedings initiated by state governments appeared to be ‘biased and prejudiced’ and sought a CBI probe into the multi-crore scams.

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