Ponzi scams: Sebi officials come under CBI scanner
New Delhi, Feb 14: The Central Bureau of Investigation (CBI) will question several officers of the Security Exchange Board of India (Sebi) after it was found that they had either looked away or aided Ponzi companies who cheated the public of over Rs 2000 crore.
An officer with the CBI informed Oneindia that they have found that at least 8 officials from the Sebi had deliberately looked away and aided ponzi groups go about their scam. The Serious Frauds Investigation Office which had probed the Saradha scam had pointed the names of at least 8 officials alleged to be part of the scam.
The CBI received a major boost when the Supreme Court had on Friday came down heavily on both the SEBI and also the Reserve Bank of India on their handling of Ponzi scams especially in West Bengal.
A petition had been filed in the Supreme Court seeking a CBI probe into the functioning of 94 Ponzi companies in West Bengal and Odisha. It was alleged that these companies had collectively cheated the public of Rs 2,000 crore.
All guilty officials must be investigated:
The
Supreme
Court
while
hearing
the
petition
made
a
scathing
attack
on
the
Sebi
and
also
the
RBI.
"All
officials
who
have
connived
must
be
probed
and
none
can
be
let
out
of
the
purview
of
the
investigation,
the
Supreme
Court
observed.
Sebi
and
the
RBI
are
largely
responsible
for
scams
of
such
a
huge
magnitude
flourishing.
We
have
touched
upon
the
role
of
the
Sebi
and
the
RBI
earlier.
However
they
have
turned
a
blind
eye,
the
Bench
also
observed.
Officials were bribed:
As per the report filed by the Serious Frauds Investigation Office, it was pointed out that several officials especially from the Sebi were bribed during the Saradha scam. Their role was also questioned in the handling of the various other ponzi scams too.
The
Bench
of
the
Supreme
Court
said
that
investigations
suggest
that
regular
payments
towards
bribe
were
paid
through
middleman
to
some
of
those
who
were
supposed
to
keep
an
eye
on
such
ponzi
companies.
Need
to
examine
Sebi,
RBI
closely:
The Supreme Court also pointed out that there is a need to observe the functioning of Sebi and RBI closely. Those officers who have been part of a larger conspiracy must be investigated, the court also ruled.
The CBI says that these observations come in handy since there were some teething troubles when they tried investigating the officers from the Sebi. Cases will now be booked and arrests carried if necessary the officer from the CBI also informed.
Sebi cannot wriggle out:
Sebi had argued that chit funds did not fall under its purview. The court was however quick to point out that Sebi had on different occasions ordered the winding up of two companies which were involved in ponzi scams.
When the Sebi has issued such an order how can they now claim that they have no jurisdiction, the court observed. How can you can that you have no role to play in ponzi scams, the court asked Sebi.
The Bench was also harsh on the Sebi when it said that connivance by some of its officials had led to scams of huge magnitude going on unabated. There is a deep rooted apathy if not criminal neglect on part of some of the officers and they must be investigated and brought to justice the Bench also pointed out.
Oneindia News