The former finance minister pointed out that while chit funds had adversely affected small savings, the Centre had not helped by making small savings unattractive. If not, then why havenвЂ™t they?вЂќ asked Dasgupta. вЂњI would like to know if the state government has done anything to get the bill passed.

вЂњThe bill would have made a big difference for it would have allowed the governent to act against the companies before investors had been cheated. They would have kept vigil on the income and expenditure of chit funds and empowered the state government to act against them if irregularities were suspected. The bill had sugested district-wise set-ups to monitor financial companies that were to be headed by the district magistrates and the commissioner of police. But the approval remains pending,вЂќ said Dasgupta. They suggested two changes which we accepted and sent back. вЂњWe followed it up at least a dozen times but didnвЂ™t get any response till 2009. But it was never approved by the President, said Dasgupta. In 2003, the Left Front government had got the West Bengal Protection of DepositorsвЂ™ Interest in Financial Institutions bill passed in the Assembly. In 2011, SEBI told the company that it did not have its approval,вЂќ said Dasgupta. It included the one whose owner is now absonding and sought a joint probe by them and the state government. In 2009, we had written to SEBI against four chit fund companies that were flouting rules. While on the first occasion, we arrested more than 50 owners and seized the properties of their firms, the last time we acted on at least 1,000 complaints. In between, we had filed a PIL at the high court seeking the seizure of some chit company properties. We had done that twice in 1990-вЂ™91 and again in 2002-вЂ™03. The state government can act against them only on the basis of a written complaint. They need to operate under RBI and SEBI guidelines. вЂњAll they need is a clearance from the registrar of companies under the Union ministry of corporate affairs. These companies did not require approval from the state government to do business, he explained. The allegation that the chit fund companies now being probed had been approved during the Left Front rule was baseless, said Dasgupta. вЂњAlthough there are around 15 major companies, there would be more than a hundred if you count the smaller ones,вЂќ he said. Terming the crisis as probably the worst of the chit fund frauds to have hit the state, the former minister suspected that these companies might have mopped up more than Rs 30,000 crore. It needs to be investigated why they made a foray into the media business and whether they had collaborations with the state government,вЂќ said Dasgupta. They should disclose whether politicial parties took favours from these companies. The state government should have started the process to seize their properties by now, auction them and return money to the investors.

вЂњThousands of small investors and agents have been hit. Calling for a CBI enquiry, the Left Front veteran felt the delay in arresting the owner of the Saradha Group would вЂњcomplicate mattersвЂќ and make it more difficult for investigating agencies to nail him and secure justice for the wronged investors. Addressing the press on Sunday, Dasgupta argued that the government could also have appealed to the high court to seize and auction the properties of chit fund companies that had taken investors for a ride, or written to the RBI and SEBI to act against them. KOLKATA: The chit fund crisis could have been averted had the state government taken a proactive role in getting an act - mooted by the erstwhile Left Front government to restrict unscrupulous financial institutions - passed by the Centre, former finance minister Asim Dasgupta has said.

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