The Saradha group and its Managing Directors Suita Sen form the securities markets till the company winds up all and its chit fund schemes and refunds the entire money to investors.
“CHIT FUND” is a one kind of saving scheme practiced in India. A chit fund company is manage conducts chit scheme as defined in section of chit Funds Act 1982. It means transaction called chit and chit fund.
Investor and fund collection Saradha group agent have been opposite for many days in west Bengal. In 2011, Saradha Group buys Global Automobiles, a heavily indebted motorcycle company.
The group also invested in football clubs like Mohan Bagan and sponsored Durga puja.
Saradha interested lakhs of investors to deposit money in its scheme with glossy brochures and promise of separately high returns. Chief minister Mamata Benerjee had begun two Saradha offices.
Saradha had wiped up about 1200 crore through its chit funds but some calculation put that the figure closer to 4000 crore.
The investors could invest as little as 100 rupees and there was no upper limit. Saradha promised returns unheard of 15% to 50%.
22 April 2013 West Bengal government announced that 4 member inquiry commission headed by shyamal kumar Sen.
On 24 April 2013, Mamta Banerjee announced controversial 500 crore relief fund for the low income depositors of the saradha Group.