Chit funds explained: facts Vs fiction

Description

The Saradha scam in West Bengal has created a storm and the murky multi-level marketing scheme of the group—helped and sustained by political leaders and other godfathers—is repeatedly and erroneously described as the ‘chit fund scam'. This would be hilarious but for its ominous implications for the chits industry. Saradha had more than 160 entities/activities and not even one of them was registered under the chit fund category. The mainstream media, which thrives on abysmal ignorance in matters of finance, repeatedly refers to Saradha as a chit and sometimes a ‘cheat fund' scam. It is obnoxious since the scam has nothing to do with chit fund activity. There are reports that some members of the Parliamentary Committee on Finance headed by Yashwant Sinha—former Finance Minister—are discussing the possibility of abolishing all chit funds in the light of the Saradha scam, even though the Saradha group did not have any activity linked to chit funds. This is like amputating the left leg when there is gangrene in the right leg. Read more at: https://rvaidya2000.com/2013/05/21/chit-funds-explained-facts-vs-fiction/

Publication Date

21-5-2013

Publication Title

Niticentral.com

Keywords

Financial management, Financial system, Chit funds, Chit fund scam

Source Link URL

https://rvaidya2000.com/2013/05/21/chit-funds-explained-facts-vs-fiction/

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