SARADHA SCAM: THE CULMINATING POINT OF HUMAN GREED AND GOVERNMENTAL LAXITY

Abstract The insatiable nature of human beings is a boon for the flourishing of business of ponzi schemes and there appears no setback for their future prospects as well due to the unusually high returns, they offer. Not very unusual, the outbreak of the Saradha scam pointed out the glaring loopholes in the traditional banking system and was the awakening call for the Indian government. It was a magnanimous scandal which shook the very foundation of Indian economy. Political endorsement served as the key factor for mushrooming of scams like Saradha. Thousands were duped, their confidence broken, their savings robbed as ultimately their savior turned out to be their backstabber. Saradha working under the garb of a chit fund turned out to be an illegal collective investment scheme. This scam brought to light the lacuna in the investigation procedure and marked the absence of co-operation between the different regulatory authorities probing its’ working. Has this scam taught people a lesson and the measures undertaken by the government proved to be adequate, only time will tell.