Communist Party of India (Marxist) - chit funds https://elections2014.cpim.org/tags/chit-funds en Bengal: Financial Frauds https://elections2014.cpim.org/content/bengal-financial-frauds <div class="field field-name-field-social field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style addthis_32x32_style " addthis:title="Bengal: Financial Frauds - Communist Party of India (Marxist)" addthis:url="https://elections2014.cpim.org/content/bengal-financial-frauds"><a href="http://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook_like" fb:like:layout="button_count"></a> <a href="http://www.addthis.com/bookmark.php?v=300" class="addthis_button_google_plusone" g:plusone:size="standard"></a> <a href="http://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="http://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="http://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="http://www.addthis.com/bookmark.php?v=300" class="addthis_button_"></a> </div> </div></div></div><div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img typeof="foaf:Image" src="https://elections2014.cpim.org/sites/default/files/Surjya_Kanta_Mishra_0.jpg" width="200" height="300" alt="" /></div></div></div><div class="field field-name-field-date field-type-date field-label-hidden"><div class="field-items"><div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2013-10-07T00:00:00+05:30">Monday, October 7, 2013</span></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><div>&nbsp;</div><div align="center"><strong>Representation to the Prime Minister of India concerning</strong></div><div align="center"><strong>Financial Fraud by certain Financial Companies/Chit Funds</strong></div><div>&nbsp;</div><div>Dr. Manmohan Singh</div><div>Hon’ble Prime Minister of India</div><div>New Delhi</div><div>&nbsp;</div><div>Hon’ble Prime Minister,</div><div>&nbsp;</div><div>Kindly refer to our letter of May 9, 2013 regarding the alarming financial irregularities of Saradha Group, the reply letter of June 2, 2013 of Union Minister of State for Finance&nbsp; (Expenditure and Financial Services), and our subsequent letter on July 15, 2013 pointing out inadequacy of action on the part of Central Government&nbsp; against this financial scam.</div><div>&nbsp;</div><div>This inadequacy has now resulted in a situation where despite the massive fraud by this Saradha Group, with closing down of all its offices and default on repayment of at least 17 lakh depositors, no action has yet been taken on the part of the SEBI and the Government of West Bengal to attach the properties of this Saradha Group and for arranging in a&nbsp; legally appropriate manner disposal of these&nbsp; properties for repayment of dues to the depositors. Instead, without having any Constitutional and legal basis and in deviation from the Order of the Hon’ble Calcutta High Court (July 26, 2013 page 70), the State Government has just allotted and also released a sum of Rs. 50 crore from the State budgetary resource as grant to the Inquiry Commission recently, set up by the State government itself, for starting payment to a section of depositors (Memo issued by the Home Department, September 23, 2013).&nbsp; Providing such grant for compensation instead of disposal of assets of the Saradha Group is again violation in terms of reference (No. 8) of the Inquiry Commission itself (Gazette Notification April 24, 2013).&nbsp;</div><div>&nbsp;</div><div>Under these circumstances, we urge upon you to intervene in this matter so that payment to all depositors is made with adequate promptness, by attaching the properties of Saradha Group in accordance with law and as also directed by the SEBI (April 23, 2013) and not by giving grant through the Commission which is not legal, as mentioned above.&nbsp; This process should start immediately with focus on attachment and disposal of properties, along with punishment for the offending Group.</div><div>&nbsp;</div><div>For completing the entire process, a comprehensive list of properties, including the `banami’ properties, would be essential.&nbsp; Since this Saradha Group reportedly has properties in several states as well as abroad and since states like Tripura, Odisha and Assam affected by the activities of this Group, have already decided to involve CBI, the government of India should immediately move the Hon’ble Supreme Court, by joining a litigation already being heard in the Apex Court in this matter, in favour of intervention of CBI for investigation under the order as well as supervision of the Hon’ble Supreme Court.&nbsp; It would be appropriate to forge coordination between the efforts of CBI with those of SFIO and ED and also the State agencies, when required.</div><div>&nbsp;</div><div>Of late, there have been reported allegations by one Trinamul Congress (AITC) Member of Parliament&nbsp; against another AITC MP for having irregular financial relation with this Saradha Group.&nbsp; These are all the more reasons for immediate induction of CBI for inquiry with overall supervision of the Hon’ble Supreme Court for reasons of neutrality.</div><div>&nbsp;</div><div>Similar action should be initiated by the Government of India regarding other financial groups/chit funds where frauds have been detected by SEBI or SFIO, with punishment for the offending companies and beginning the process of attachment of properties and disposal in a lawful manner for compensation of the depositors.&nbsp;</div><div>&nbsp;</div><div>Along with the campaign at all levels against the activities of these irregular companies, it is also important for Government of India to bring back the attractiveness of small saving schemes and to&nbsp; take more expeditious steps for spreading banking network in West Bengal and in several other states.</div><div>&nbsp;</div><div>&nbsp;</div><div>&nbsp;</div><div><strong>(Surjyokanta Mishra)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Sitaram Yechury)</strong></div><div>Leader of Opposition &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leader, CPI(M) Group</div><div>West Bengal Assembly&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rajya Sabha</div><div>&nbsp;</div><div>Copy to : Sachin Pilot, Minister of Corporate Affairs, Government of India, New Delhi</div><p>&nbsp;</p></div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-hidden"><div class="field-items"><div class="field-item even"><a href="/tags/saradha" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Saradha</a></div><div class="field-item odd"><a href="/tags/west-bengal" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">West Bengal</a></div><div class="field-item even"><a href="/tags/chit-funds" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">chit funds</a></div><div class="field-item odd"><a href="/tags/memo-prime-minister" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Memo to Prime Minister</a></div><div class="field-item even"><a href="/tags/sitaram-yechury" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sitaram Yechury</a></div><div class="field-item odd"><a href="/tags/surjyokanta-mishra" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Surjyokanta Mishra</a></div></div></div> Mon, 07 Oct 2013 07:38:45 +0000 murali 2586 at https://elections2014.cpim.org https://elections2014.cpim.org/content/bengal-financial-frauds#comments Central Committee Communique https://elections2014.cpim.org/content/central-committee-communiqu%C3%A9-25 <div class="field field-name-field-social field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style addthis_32x32_style " addthis:title="Central Committee Communique - Communist Party of India (Marxist)" addthis:url="https://elections2014.cpim.org/content/central-committee-communiqu%C3%A9-25"><a href="http://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook_like" fb:like:layout="button_count"></a> <a href="http://www.addthis.com/bookmark.php?v=300" class="addthis_button_google_plusone" g:plusone:size="standard"></a> <a href="http://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="http://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="http://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="http://www.addthis.com/bookmark.php?v=300" class="addthis_button_"></a> </div> </div></div></div><div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img typeof="foaf:Image" src="https://elections2014.cpim.org/sites/default/files/AKG%20Bhawan1_1.JPG" width="194" height="122" alt="AKG Bhawan" title="AKG Bhawan" /></div></div></div><div class="field field-name-field-date field-type-date field-label-hidden"><div class="field-items"><div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2013-05-13T00:00:00+05:30">Monday, May 13, 2013</span></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>&nbsp;</p><p align="right">&nbsp;</p><p align="right">May 13, 2013</p><p align="right">&nbsp;</p><p align="right">&nbsp;</p><p><strong>Press Communique</strong></p><p>&nbsp;</p><p>&nbsp;</p><p>The Central Committee of the Communist Party of India (Marxist) met in New Delhi on May 11 &amp; 12, 2013. It took stock of the international and national situation and has issued the following statement:</p><p>&nbsp;</p><p><strong>Resignation of Two Ministers</strong></p><p>&nbsp;</p><p>The Central Committee noted that the Railway Minister Pawan Kumar Bansal and the Law Minister Ashwani Kumar, were finally forced to resign after the Prime Minister and the Congress party resisted this demand while the parliament session was on. This has exposed the hypocrisy of the Congress which has blamed the opposition for the disruption of the parliamentary proceedings since the wrong-doing of the ministers became known.</p><p>&nbsp;</p><p><strong>Prime Minister’s Role</strong></p><p>&nbsp;</p><p>The episode of the two ministers highlights how corruption has become endemic in this government and how efforts are made to cover it up. The Prime Minister and the Prime Minister’s Office cannot escape responsibility for these affairs, since during the coal block allocations, the Prime Minister was directly looking after the coal ministry. A Joint Secretary of the PMO was involved in the discussions to change the status report of the CBI to the Supreme Court. The Prime Minister’s image has been tarnished as he is presiding over such a corrupt regime. The Prime Minister has to come out and explain his role and that of his office in both the coal block allocation case and in the 2G spectrum matter.</p><p>&nbsp;</p><br clear="all"><p><strong>Harmful Economic Policies</strong></p><p>&nbsp;</p><p>The Central Committee noted that there is a general squeeze on expenditure in the Union Budget and cuts in subsidies on petroleum products &amp; fertilizers and negligible increase in the food subsidy. This will add to the burdens on the people in the form of rising prices and cut in entitlements.</p><p>&nbsp;</p><p>The Central Committee strongly criticized the partial decontrol of sugar which will lead to an increase in sugar prices both in the PDS and open market and affect the interests of sugarcane growers.</p><p>&nbsp;</p><p>The Central Committee strongly opposed the move to increase the prices of natural gas based on the recommendations of the Rengarajan Committee.</p><p>&nbsp;</p><p><strong>Food Security &amp;</strong></p><p><strong>Land Acquisition Bills</strong></p><p>&nbsp;</p><p>The Central Committee discussed the proposed Food Security Bill and the Land Acquisition, Rehabilitation and Resettlement Bill which the government wants adopted in Parliament.&nbsp; The CPI(M) reiterates that the Food Security law should provide for universal public distribution system. It should provide for 35 kg of foodgrains for each family (of five persons) at not more than Rs. 2 per kg.</p><p>&nbsp;</p><p>The Land Acquisition Bill has a number of flawed clauses.&nbsp; The major flaw is that it exempts 13 laws from the purview of the Bill.&nbsp; These include the Indian Railways Act, National Highways Act, Land Acquisition (Mines) Act etc under which the bulk of the land acquisition takes place.&nbsp; The Left parties want a number of amendments to be made to the existing Bill.&nbsp; The UPA government should not consider promulgating ordinances on the two Bills since they are major legislations and require thorough debate and scrutiny in Parliament.&nbsp;</p><p>&nbsp;</p><p><strong>Stop India-EU FTA</strong></p><p>&nbsp;</p><p>The Central Committee demanded that the government not proceed with the Indo-EU Free Trade Agreement which is being negotiated.&nbsp; The agreement will have negative impact on virtually every area of economic activity, including agriculture, industry and services.&nbsp; For instance, the impact of subsidized dairy imports from the EU can jeopardize the livelihood of millions of&nbsp; farmers and milk cooperatives.</p><p>&nbsp;</p><p>The Central Committee demanded that the government not conclude the negotiations.&nbsp; It should wait for the report of the Parliamentary Standing Committee, hold public consultations with all affected groups and conduct a parliamentary debate on the issue.&nbsp;</p><p>&nbsp;</p><p><strong>Strict Regulation Required</strong></p><p>&nbsp;</p><p>The Central Committee noted with dismay that lakhs of people have lost their savings and livelihood in the collapse of the Saradha group of companies. The Trinamul Congress has been closely working with this group of companies and using its media for its political purposes.</p><p>&nbsp;</p><p>The Saradha episode also highlights the wrong policies of the Central Government. It has cut the interest rates for small savings deposits and also eliminated or reduced the commissions for agents of various savings and insurance schemes. This is helping chit fund companies to lure the people. The Central Committee called for a new law to govern the non-banking financial companies and chit funds and an effective regulatory mechanism, which does not exist at present.</p><p>&nbsp;</p><p><strong>Modi &amp; BJP</strong></p><p>&nbsp;</p><p>The Central Committee noted that fresh evidence has surfaced about the role of Narendra Modi as Chief Minister during the Gujarat pogroms in 2002. The SIT material made available shows how the police were prevented from taking action against mobs who were out to commit the communal carnage. The Central Committee demanded that on the basis of this evidence, fresh charges be formulated against Narendra Modi and he should not continue in the post of Chief Minister.</p><p>&nbsp;</p><p>The so-called Gujarat model which the BJP government under Modi has followed has led to growing deprivation and a fall in human development index. 48 per cent of the children of Gujarat are malnourished; its literacy rate has slumped from fifth to seventh position for children between 6 to 14 years.&nbsp; The state has slipped from 10<sup>th</sup> to 11<sup>th</sup> position between 2000 and 2008 according to the latest Human Development Report.</p><p>&nbsp;</p><p>The Central Committee noted that the BJP has been routed in the Karnataka assembly election. This is a consequence of the rank corruption, the nexus with the mining mafia and misrule of the BJP state government.</p><p>&nbsp;</p><br clear="all"><p><strong>Tripura Election</strong></p><p>&nbsp;</p><p>The Central Committee warmly congratulated the CPI(M) and the Tripura Left Front for its superb success in the assembly elections and the formation of the 7<sup>th</sup> Left Front government in the state.</p><p>&nbsp;</p><p><strong>Panchayat Elections in West Bengal</strong></p><p>&nbsp;</p><p>The Mamata Banerjee government has been trying to sabotage the holding of panchayat elections by refusing to heed the recommendations of the State Election Commission. The High Court verdict has unambiguously endorsed the stand of the State Election Commission for a three phase poll and the deployment of central paramilitary forces. Yet, the TMC is seeking to further delay the holding of the elections by going in appeal against this verdict. The Central Committee demanded that the panchayat elections be held within the scheduled time on the basis of the norms set out by the State Election Commission.</p><p>&nbsp;</p><p>The Central Committee condemned the widespread attacks and violence against the CPI(M) and the Left Front in West Bengal which was unleashed on the pretext of an untoward incident, during the protest on the custodial death of Sudipta Gupta, in Delhi. The Central Committee demanded an end to such attacks and the State Government should discharge its responsibilities to maintain peace and law and order.</p><p>&nbsp;</p><p><strong>Abolition of Death Penalty</strong></p><p>&nbsp;</p><p>The Central Committee discussed a note presented by the Polit Bureau on the abolition of the death penalty. The Central Committee decided that the Party will advocate the abolition of the death penalty. In India, the death penalty, as it is in practice is arbitrarily implemented. It is inhuman and after execution irreversible. Instead of capital punishment, the Party wants in the “rarest of rare” cases and most heinous crimes, life imprisonment to be extended for the entire life of the person convicted with no scope for remission.</p><p>&nbsp;</p><p><strong>Sajjan Kumar Case</strong></p><p>&nbsp;</p><p>The Central Committee noted that there has been a miscarriage of justice in the acquittal of Congress leader Sajjan Kumar in a murder case during the anti-Sikh violence in Delhi in 1984.&nbsp; Of the six accused in the&nbsp; case, five have been convicted by the court and Sajjan Kumar has been acquitted.&nbsp;</p><p>&nbsp;</p><p>The Central Committee demanded that there should be an appeal made against the acquittal. Further, a Special Investigation Team should be constituted to investigate and prosecute Sajjan Kumar in another anti-Sikh riot case.&nbsp;</p><p>&nbsp;</p><p><strong>Kerala</strong></p><p>&nbsp;</p><p>The Central Committee noted that rifts have developed within the UDF in Kerala and the government is failing to tackle the urgent problems facing the people and the state. It is important at this juncture that the Party provide a united leadership so that the Party and the LDF can make significant advances.</p><p>&nbsp;</p><p>A Commission of the Polit Bureau has been constituted to look into certain organisational matters which have been referred to the Central Committee. The six-member Commission consists of Prakash Karat, S Ramachandran Pillai, Sitaram Yechury, Nirupam Sen, B V Raghavulu and A K Padmanabhan.</p><p>&nbsp;</p><p>The Central Committee approved the disciplinary action taken by the state committee against four Party members in Kerala.</p><p>&nbsp;</p><p><strong>On Neighbouring Countries</strong></p><p>&nbsp;</p><p>The Central Committee extended its support and solidarity for the secular and democratic forces in Bangladesh who are conducting a big struggle against the rightwing fundamentalist forces in the country. The Central Committee expressed its deep shock at the tragedy due to the collapse of a building housing garment factories in which a thousand workers have died. The Bangladesh government should immediately take steps to close sweat shops, for ensuring the safety of working conditions, provision of adequate wages and social security for the lakhs of garment workers in the country.</p><p>&nbsp;</p><p>The Central Committee welcomed the resolution of the issue on the Line of Actual Control in Ladakh, between India and China. Both countries are committed to maintain peace and tranquility on the India-China border and have set up a mechanism which is working to resolve whatever issues and disputes that arise. The forthcoming visit of the Chinese Premier should help improve relations.</p><p>&nbsp;</p><p>The Central Committee strongly disapproved the obdurate stand taken by the President of Sri Lanka who is going back on the commitment to arrive at a political settlement on the Tamil issue wherein devolution of powers to the Tamil areas were assured.</p><p>&nbsp;</p><p>The Central Committee welcomed the holding of parliament elections in Pakistan which is going to result in the formation of a new government. These elections were held in the face of extremist and terrorist attacks. The people have ensured for the first time a democratic transition from a civilian government, which completed its term.</p><p>&nbsp;</p><p><strong>Picketing Programme</strong></p><p>&nbsp;</p><p>The Central Committee reviewed the <em>Sangharsh Sandesh </em>jathas undertaken by the Party in March. It discussed the preparations for the countrywide programme which is to take place in the second half of this month. The picketing is to be done on the issues of: Right to Land and House-sites; Curb Price Rise and Right to Food;&nbsp; Right to Education and Health; Right to Employment; Ensure Social Justice; &nbsp;End Corruption; farmers issues and FDI in retail trade. It called upon all Party units to make the mass picketing programme a success.&nbsp;</p></div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-hidden"><div class="field-items"><div class="field-item even"><a href="/tags/corruption" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Corruption</a></div><div class="field-item odd"><a href="/tags/kerala" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Kerala</a></div><div class="field-item even"><a href="/tags/economic-policies" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Economic Policies</a></div><div class="field-item odd"><a href="/tags/chit-funds" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">chit funds</a></div><div class="field-item even"><a href="/tags/modi" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Modi</a></div><div class="field-item odd"><a href="/tags/bjp" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">BJP</a></div><div class="field-item even"><a href="/tags/tripura" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Tripura</a></div><div class="field-item odd"><a href="/tags/west-bengal" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">West Bengal</a></div><div class="field-item even"><a href="/tags/death-penalty" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Death Penalty</a></div><div class="field-item odd"><a href="/tags/sajjan-kumar" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sajjan Kumar</a></div><div class="field-item even"><a href="/tags/sangharsh-sandesh" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sangharsh Sandesh</a></div><div class="field-item odd"><a href="/tags/picketting" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">picketting</a></div></div></div> Mon, 13 May 2013 09:52:42 +0000 murali 2413 at https://elections2014.cpim.org https://elections2014.cpim.org/content/central-committee-communiqu%C3%A9-25#comments Memo to PM https://elections2014.cpim.org/content/memo-pm <div class="field field-name-field-social field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style addthis_32x32_style " addthis:title="Memo to PM - Communist Party of India (Marxist)" addthis:url="https://elections2014.cpim.org/content/memo-pm"><a href="http://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook_like" fb:like:layout="button_count"></a> <a href="http://www.addthis.com/bookmark.php?v=300" class="addthis_button_google_plusone" g:plusone:size="standard"></a> <a href="http://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="http://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="http://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="http://www.addthis.com/bookmark.php?v=300" class="addthis_button_"></a> </div> </div></div></div><div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img typeof="foaf:Image" src="https://elections2014.cpim.org/sites/default/files/Surjya_Kanta_Mishra.jpg" width="200" height="300" alt="Surjya_Kanta_Mishra" title="Surjya_Kanta_Mishra" /></div></div></div><div class="field field-name-field-date field-type-date field-label-hidden"><div class="field-items"><div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2013-05-09T00:00:00+05:30">Thursday, May 9, 2013</span></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>&nbsp;</p><p><strong>Press Release </strong></p><p>&nbsp;</p><p>&nbsp;</p><p>A delegation of the Left Front of West Bengal met the Prime Minister Shri Manmohan Singh on May 9, 2013 urging for a neutral, fair and high level investigation into the massive fraud of committed by the Saradha Group of companies and also the return of thousands of crores&nbsp; of rupees to all the affected depositors immediately. The delegation comprised of five MPs and 6 MLAs and the former Finance Minister of West Bengal, whose names are appended in the memorandum. &nbsp;The delegation will also be meeting the President. The copy of the memorandum presented to the Hon’ble Prime Minister is given below.</p><p>&nbsp;</p><p align="center">********</p><p align="center">&nbsp;</p><p align="center">&nbsp;</p><p align="center">&nbsp;</p><p align="center">&nbsp;</p><p><strong>Dr. Manmohan Singh</strong></p><p><strong>Hon’ble Prime Minister of India</strong></p><p><strong>New Delhi</strong><strong>.</strong></p><p>&nbsp;</p><p>Hon’ble Prime Minister,</p><p>&nbsp;</p><p>Please refer to the Memorandum submitted to you on&nbsp; August 22, 2011 by the Left Front Legislative Party in West Bengal as well as the Memorandum placed before you on December 19,&nbsp; 2012 by the Left Front Members of Parliament, drawing your kind attention to the alarming problem of irregularities being committed by certain financial companies (so-called ‘Chit Funds’ in terms of local parlance in West Bengal) and requesting for an urgent action by the Central Government. Unfortunately, however, no timely intervention was made by the Central Government and the present State Government. As a result, a massive fraud has been committed by an irregular financial company (Saradha Group) by suddenly closing down all its offices and resulting in a widespread default on repayment to lakhs and lakhs of depositors, belonging mostly to the poorer sections in rural and urban areas of West Bengal. Employees in the print and electronic media owned or controlled by this Saradha Group have also lost their jobs due to this sudden closing down. There has been, due to the misdeeds of this company and similar other companies as well as&nbsp; the Central policy of making small saving schemes less attractive and commission of the agents reduced, a severe fall in the small savings collection in the State - from Rs. 8,409 crore of net collection of small savings in Post Offices of West Bengal in the last financial year ( 2010 - 2011) of the Left Front Government to &nbsp;&nbsp;( -) Rs. 987 crore in the next year ( 2011 - 2012) and to (-) Rs. 165 crore in 2012 - 2013 ( upto December), adversely affecting the State as well as the small savings agents.</p><p>&nbsp;&nbsp;&nbsp; You are kindly aware that among the different types of financial companies, there is one category of companies which raise deposits from the people, invest the&nbsp; money and promise returns &nbsp;in terms of interest, etc. These companies are required to register with the Registrar of Companies &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ROC) under the Ministry of Corporate Affairs of the Central Government, and then also obtain permission from the Reserve Bank of India (RBI) and function by obeying the guidelines of RBI. If there is any violation of these guidelines, then the RBI can take necessary actions, including stoppage of work of the concerned companies. There is another category of financial companies which raise funds from the people in terms of share/debentures, and then invest the money in various ventures, including real estate, hotels, television channels, newspapers, entertainment business etc., with promise of returns in terms of lands, apartments, etc. These companies are again to register first with ROC and then get approval from the Securities and Exchange Board of India (SEBI) under the Union Finance Ministry, and obey the guidelines of SEBI. If the guidelines are flouted, then SEBI can take action in terms of prohibiting the activities of the concerned companies. The Saradha Group belongs to this second category. It may be noted in the context that the State Government does not have any role in giving approval of these companies.</p><p>&nbsp;&nbsp; Grave financial irregularities are committed by both these two categories of companies when they violate the guidelines of RBI or SEBI, as the case may be, by alluring promises in terms of false and unrealizable offers of interest or returns. There is usually a period after which these returns are to be paid back to the depositors. In the intervening period, the concerned companies keep on raising funds and often make very partial payment, and then suddenly close their activities without any notice, thus cheating the common people in a large scale as has been the case with the Saradha Group, as&nbsp; mentioned above.</p><p>&nbsp;&nbsp; Under the circumstances, the State Government, within its limited power, can take action if any written complaint of being cheated is obtained, by immediately arresting the proprietors of the concerned companies, attaching all of their properties and then arranging through the Hon’ble Court, the sale of the properties for repaying back to the affected depositors. If there is no written complaint, even then the State Government can conduct enquiry on its own and submit the findings to the concerned Central Agencies (SEBI or RBI) for taking necessary action.&nbsp; The State Government can also pass a Bill in the State Assembly for Presidential assent for implementing the Act, so as to take necessary action at the very initial stage of the offence in terms of decentralized administrative and legal framework in the districts.</p><p>&nbsp;&nbsp; The Left Front Government in West Bengal had, during its tenure, taken all these actions. In 1980- 81, when some large financial companies had started cheating people, the State Government, on the basis of written complaint, took exemplary action by&nbsp; arresting the heads of the&nbsp; concerned companies and then attaching their properties for beginning the process of repayment through the Hon’ble Court. When again in 1991- 92, several companies had cheated people, the State Government in the Finance Department and the Home Department ( involving both&nbsp; Kolkata Police and District Police),&nbsp; on the basis of written complaint, took prompt action by arresting heads of nearly 96 companies, attaching their properties ( both movable and immovable , including bank accounts) and then starting&nbsp; a Public Interest Litigation &nbsp;on its own in the Hon’ble Calcutta High Court with a verdict for selling the attached properties through the Court - appointed special officer for beginning the process of repayment of money to the depositors. In the year 2002 - 2003, when about 17 companies had cheated people, the heads of all of these companies were arrested, again on the basis of written complaints, and a process of prompt repayment was undertaken. Along with taking those steps, the Left Front Government had also introduced in 2003 -2004 a bill (namely, the West Bengal Protection of Interest of Depositors in Financial Establishments Bill, 2003) for taking early preventive and punishable action against irregular financial companies with a decentralized framework as mentioned before. However after repeated exchange of views and urging by the State Government, when a much delayed Central response ( although&nbsp; for substantially similar bills for several other State Governments, Presidential assent was accorded with more promptness) was obtained in August, 2009 with Presidential message for a few changes, these changes were promptly incorporated and a new bill (The West Bengal Protection of Interest of Depositors in Financial Establishment Bill, 2009)&nbsp; was introduced and passed unanimously ( with TMC MLAs also present) in the State Assembly on December&nbsp; 22, 2009. The new Bill was then sent for Presidential assent. However the Presidential assent, despite reminders, could not be obtained during the tenure of the Left Front Government.</p><p>&nbsp;&nbsp;&nbsp; It needs to be mentioned that from 2008 - 09, a new feature emerged when several companies within jurisdiction of SEBI had started operating in a manner which created apprehension of cheating of people.&nbsp; However, no written complaint of cheating was received by the State Government. The Left Front Government, therefore, started enquiry on its own involving jointly the Finance Department and Home Department (in terms of Kolkata Police and District Police) and then submitted its findings concerning four relatively big companies ( including Saradha Group) to SEBI for necessary action. For the Saradha Group, the attention-drawing letter was sent by the Left Front Government on August 23, 2010. We now find that after closing down of offices of Saradha Group that SEBI has recently issued an instruction on April 23, 2013 on the Saradha Group to pay back to the depositors within a period of three months and with prohibition on taking any further deposit. Although this is a step in the right direction, it has been much too delayed.</p><p>&nbsp;&nbsp; It is also noted with serious concern that we still do not know about any follow-up action by the TMC-led State Government regarding the enquiries started by the Left Front Government into the affairs of four companies mentioned above. We do not know because despite our specific queries, no answer was given in the State Assembly. Moreover, when a discussion on this issue was proposed on December 11, 2012 two Left Front MLAs &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(including one lady tribal MLA) were beaten up. We also do not know what action was taken by the TMC - led State Government on the 2009 Bill which was unanimously passed in the Assembly (with TMC MLAs present) for Presidential assent in the first twenty months of its existence. We now find that on the basis of a communication from OSD &amp; ED Special Secretary to the Governor of West Bengal to the Secretary to the West Bengal Legislative assembly a motion was passed in the Assembly to withdraw the bill. The aforesaid communication reads:&nbsp; <strong><em>The Ministry of Home Affairs, Government of India has now returned the aforesaid Bill, considering it to be withdrawn by the Government of West Bengal as it has been decided to recast the Bill in order to strengthen it for the purpose of protecting the interest of the depositors in Financial Establishments</em></strong>. This appears to be a clear violation of legislative power of the State Assembly, since prior approval of the Assembly was not taken by the present State Government before sending its views to the Centre for return of the bill, 2009. Moreover, in terms of the communication mentioned above, the following sentence in Sl. No. 6 in the statement of object and reasons of this new bill seems confusing<strong>:</strong>&nbsp; <strong><em>It has been advised by the Government of India to withdraw the said Bill.</em></strong> Then, with only a few changes in the 2009 Bill, the new Bill has been passed in the Assembly and sent for Presidential assent. We also find that some of these changes were not necessary and there is also a possibility of further complications and delay. &nbsp;We suggested a remedial amendment to this new Bill, and a quicker course of action which was not accepted. After raising our anxiety about further delay which may be caused by this bill, we did not however stand on the way of passing of the bill. We want an early action on the part of Hon’ble President in terms of Article 201 of the Constitutiuon. &nbsp;&nbsp;</p><p>&nbsp;&nbsp;&nbsp; Meanwhile, the sufferings of depositors remain unattended.&nbsp; We therefore urge upon you for considering the following actions:</p><p>.(1) As several states are involved in this massive fraud of Saradha Group, CBI should immediately be involved in the investigation of this fraud under supervision of appropriate Hon’ble Court.</p><p>&nbsp;&nbsp;&nbsp; Since SEBI is the nodal Central agency, and the recent verdict of the Hon’ble Supreme Court (2012) clearly directs SEBI to be the agency for necessary action, SEBI should also be instructed in coordination with CBI and&nbsp; SFIO to move into this Saradha case immediately, for a proper and&nbsp; comprehensive investigation into the total list of properties (including different forms of illegal transfers) for immediate attachment and for moving the Hon’ble Supreme Court as well as Hon’ble Kolkata High Court for selling of the properties needed &nbsp;for repayment to the depositors without delay, and also for exemplary punishment for the offending persons.</p><p>&nbsp;&nbsp; This entire process of investigation and attachment should be, for reasons of neutrality and fairness, under the appropriate supervision of Hon’ble Supreme Court and Hon’ble Calcutta High Court.</p><p>(2) Where there are reasons for anxiety regarding other financial companies in the State, joint action as mentioned about, may be undertaken immediately for correcting the practices of these financial companies for preventing further damages.</p><p>(3) National small saving schemes should be immediately restored by the Central Government to their previous status of attractiveness, with simultaneous restoration of commission of agents by both the Centre and the State Government.</p><p>(4) &nbsp;Along with the highest priority on refund of depositors’ money, &nbsp;&nbsp;&nbsp;attention may be given from the national level for a massive programme of an economic reconstruction of the lives of affected depositors (small and marginal farmers, small and tiny entrepreneurs, &nbsp;traders etc.) in terms of soft loans from the nationalized banks to the willing persons as well as rejuvenating the movement of Self-Help Groups in the State and democratically elected co-operatives ( now rendered inoperative in the State) so that this massive loss can be transformed into a programme of reconstruction for growth of production and employment.</p><p>There is also&nbsp; a need for paying attention to problems of journalists, performers and others connected with the closing &nbsp;down of newspapers and TV channels in terms of inducting new entrepreneurs (without any link with irregular financial companies), or in terms of helping formation of co-operative of employees through assistance including soft loan.</p><p>(5) An all-out democratic and decentralized campaign should be started immediately among the affected people for convincing them to stay away from these irregular financial companies and to keep their savings, among others, specially in post office small saving schemes, nationalized banks and co-operative banks.</p><p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; With regards,</p><p>&nbsp;</p><p align="center">Sd/-</p><p>&nbsp;</p><table border="0" cellpadding="0" cellspacing="0"><tbody><tr><td style="width:299px;"><p><strong>Surjya Kanta Mishra</strong></p></td><td style="width:299px;"><p><strong>&nbsp;&nbsp; Sitaram Yechury, MP</strong></p></td></tr><tr><td style="width:299px;"><p><strong>Leader of the Delegation, Leader of the Opposition in West Bengal Assembly</strong></p></td><td style="width:299px;"><p>&nbsp;</p></td></tr><tr><td style="width:299px;"><p>&nbsp;</p></td><td style="width:299px;"><p>&nbsp;</p></td></tr><tr><td style="width:299px;"><p><strong>Subhahas Naskar, MLA</strong></p></td><td style="width:299px;"><p><strong>&nbsp;&nbsp; Barun Mukherjee, MP</strong></p></td></tr><tr><td style="width:299px;"><p>&nbsp;</p></td><td style="width:299px;"><p>&nbsp;</p></td></tr><tr><td style="width:299px;"><p><strong>Paresh Adhikary, MLA</strong></p></td><td style="width:299px;"><p><strong>&nbsp;&nbsp; Manohar Tirkey, MP</strong></p></td></tr><tr><td style="width:299px;"><p>&nbsp;</p></td><td style="width:299px;"><p>&nbsp;</p></td></tr><tr><td style="width:299px;"><p><strong>Prabodh Chandra Sinha, MLA</strong></p></td><td style="width:299px;"><p><strong>&nbsp;&nbsp; Basudev Acharia, MP</strong></p></td></tr><tr><td style="width:299px;"><p>&nbsp;</p></td><td style="width:299px;"><p>&nbsp;</p></td></tr><tr><td style="width:299px;"><p><strong>Anadamoy Mondal, MLA</strong></p></td><td style="width:299px;"><p><strong>&nbsp;&nbsp; Probodh Panda, MP</strong></p></td></tr><tr><td style="width:299px;"><p>&nbsp;</p></td><td style="width:299px;"><p>&nbsp;</p></td></tr><tr><td style="width:299px;"><p><strong>Chand Mohammed, MLA</strong></p></td><td style="width:299px;"><p><strong>&nbsp;&nbsp; Asim Dasgupta, </strong></p><p><strong>&nbsp;&nbsp; Former &nbsp;Finance Minister, </strong></p><p><strong>&nbsp;&nbsp; West Bengal</strong></p></td></tr><tr><td style="width:299px;"><p>&nbsp;</p></td><td style="width:299px;"><p>&nbsp;</p></td></tr></tbody></table><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;</p></div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-hidden"><div class="field-items"><div class="field-item even"><a href="/tags/memo-prime-minister" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Memo to Prime Minister</a></div><div class="field-item odd"><a href="/tags/saradha" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Saradha</a></div><div class="field-item even"><a href="/tags/chit-funds" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">chit funds</a></div><div class="field-item odd"><a href="/tags/left-front" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Left Front</a></div></div></div> Thu, 09 May 2013 10:09:04 +0000 murali 2411 at https://elections2014.cpim.org https://elections2014.cpim.org/content/memo-pm#comments