The Securities and Exchange Board of India (SEBI) has attached 134 properties of Kolkata-based Saradha Realty India Ltd. and its managing director Sudipta Sen to recover Rs.774.3 crore along with returns due to investors. The market regulator, on its website, said notice to recover the amount was sent to the company and Sen but it went unanswered and the dues were not paid.
The properties which SEBI has attached mostly include land, buildings, flats and resorts under the immovable assets category while the notice also mentions seizure of movable properties as well to recover the dues.
It is noteworthy that the Saradha Group financial scandal was a major financial scam and alleged political scandal caused by the collapse of a Ponzi scheme run by Saradha Group, a consortium of over 200 private companies that was believed to be running collective investment schemes popularly but incorrectly referred to as chit funds. This group was promoted by Sudipto Sen.
The group collected around ₹ 20000 to 30000 crore from over 1.7 million depositors before it collapsed in April 2013. It offered 10% to 18% returns per month. It had as many as 2,21,000 agents working for it, who were offered 30% commission / brokerage. And, yet, it had no business model which could have resulted into reasonable profits, leave alone such huge profits.
On 9 May 2014, the Supreme Court had directed the CBI to investigate cases relating to Saradha chit fund scam.
“It is also felt they (the defaulters) may dispose or transfer or alienate the assets with a view to obstruct or delay the recovery proceedings, which needs to be prevented immediately by attaching the said assets,” the SEBI said in a notice on its website.
In June this year, the regulator had attached various bank and demat accounts of the two defaulters for recovery of the dues and investors’ money besides others, but these have proved insufficient.
“The funds available in the bank accounts and the securities available in the demat accounts of the defaulters are not sufficient for recovery of the dues,” the notice said.
In April 2013, SEBI first passed an order against the company and Sen barring them from the market and asking them to refund the money to the investors. It also ordered the firm to shut down all its monetary schemes.
Most of the property to be attached is spread across widely in West Bengal with a flat in New Delhi.
