The Saradha Chit Fund Scam was a massive 2500 financial fraud in India, led by the Saradha Group, mainly involving chit funds and other investment schemes.
The Saradha Group, started by Sudipta Sen, began as a real estate and publishing business but later expanded into chit funds and finance. With connections in Politics, Media and Bollywood, the scam gained the trust of thousands.
Investors were promised high returns on investments in chit funds and real estate.+ However, the money was used in a Ponzi scheme, where new investors' money was paid to older ones. This led to a collapse when new investments dried up.
Thousands of investors, including many from rural areas, lost their savings. The scam caused protests, suicides, and legal battles. Sudipta Sen, the main culprit, and others were arrested.
Government agencies like the CBI and SEBI launched investigations. Assets were seized, but recovery was difficult due to the scale of the fraud. Rs 500 crore relief fund for small investors who had put money into the scheme
The scam highlights the need for better regulations, transparency, and investor awareness. + It's a reminder to stay cautious and informed while investing and for authorities to act swiftly against financial fraud to protect people's savings.