Saradha group-linked political-finance allegations Format of presentation. 1. Background and storytelling 2. Scam name, country, year, entities involved (stakeholders), industry(market) and what was the trigger point. 3. How public got aware and when 4. Flow of the scam- Begin to end (Diagrams or Chart) add all financial instruments related to that scam. Which instrument was in use 5. Duration of the scam 6. Impact of the scam and whom did it impacted the most 7. What was the market reaction and what supplements dissolving the market 8. Legal Action- Authorities involved. 9. Reference and suggestions for the same 10. Current status in the market Prepare presentation on the above topic and on the basis of the instruction given above and make 12 page ppt with conclusion in it

1. Title Slide
• Saradha Group-Linked Political-Finance
Allegations
• Prepared Presentation

2. Background & Storytelling
• • Saradha Group, a West Bengal-based chit
fund company.
• • Used ponzi-like schemes promising high
returns.
• • Spread across Eastern India targeting small
investors.

3. Scam Overview
• • Scam Name: Saradha Chit Fund Scam
• • Country: India
• • Year: 2013 (exposed)
• • Stakeholders: Saradha Group, politicians,
investors, agents.
• • Industry: Chit funds, micro-savings.
• • Trigger: Liquidity collapse due to
unsustainable payouts.

4. Public Awareness Timeline
• • Early complaints in 2012.
• • Media reported defaults in 2013.
• • Government agencies stepped in after
massive public protests.

5. Flow of the Scam
• • Company raised money through deposit
schemes.
• • Used new investor money to pay old
investors.
• • Collapse as cash inflow dropped.
• • Political funding links complicated
investigation.

6. Financial Instruments Used
• • Chit funds
• • Collective investment schemes
• • Debentures
• • Promissory notes

7. Duration of the Scam
• • Approx active period: 2008–2013
• • Rapid growth followed by collapse in April
2013

8. Impact Analysis
• • Millions of small investors affected.
• • Losses estimated above ₹2,500 crore.
• • Agents lost jobs.
• • Political credibility impacted.

9. Market Reaction
• • Market distrust in chit funds.
• • Collapse of similar schemes.
• • Regulatory tightening by SEBI.

10. Legal Actions
• • SEBI, CBI, Enforcement Directorate involved.
• • Arrests of company heads and political
figures.
• • Asset seizures and refund committees
created.

11. Current Status
• • Many cases still ongoing.
• • Partial refunds processed.
• • Sector now highly regulated.

12. Suggestions & References
• • Stronger compliance needed.
• • Awareness for rural investors.
• • References: SEBI notices, CBI charge sheets,
news sources.

13. Conclusion
• • Saradha scam highlighted regulatory gaps.
• • Emphasized importance of financial literacy.
• • Led to major reforms in India’s micro-
investment markets.