Kolkata: In a face-off between the Mamata Banerjee government and the Centre, the connection of Kolkata Police Commissioner Rajeev Kumar who is considered close to West Bengal CM Mamata Banerjee has added a new dimension to the already bitter relations between the state and the Centre.
Amidst the escalating tension, here are the details of why the CBI is looking for Kolkata Police Commissioner Rajeev Kumar in the Sharada Ponzi scam case:
- Kumar, a 1989 batch IPS officer headed a probe by a Special Investigation Team related to both Saradha and Rose valley ponzi scams prior to the CBI taking up the case in 2014 on Supreme Court's orders
- The SIT was set up by Chief Minister Mamata Banerjee after the multi billion rupee Saradha scam came to light
- The federal agency probing the ponzi scam case now needs documents related to the investigation from Kumar
- Kumar stayed away from a scheduled meeting with the visiting full bench of the Election Commission(EC) on Thursday
- Taking umbrage, the EC on Friday said it has sought an explanation about his absence from the state home secretary, Kumar's reporting boss
- Hours later, Banerjee said Kumar was on leave, and apologised to the election panel for his absence
The Saradha Group financial scandal was a major scam caused by the collapse of a Ponzi scheme run by the conglomerate. The multi-crore-rupee chit fund scam allegedly involves several key leaders from the ruling Trinamool Congress.
Today's development:
- 08:10 PM: West Bengali chief minister Mamata Banerjee addressed media after CBI faceoff
- 07:54 PM: Bidhannagar police arrived outside the CBI regional office at CGO Complex in Kolkata
- 07:54 PM: 5 CBI officers have been detained by the police
- 07:55 PM: Kolkata mayor Firhad Hakim arrived at the residence of Kolkata Police Commissioner Rajeev Kumar for the meeting
- 07:50 PM: A virtual showdown ensued as Kolkata Police personnel forcefully took away some of the CBI officers to a police station amid commotion
- 07:50 PM: West Bengal chief minister has arrived at the residence of police commissioner Kumar
- 07:43 PM: West Bengal Director General of Police arrives at the residence of Kolkata Police Commissioner Rajeev Kumar. Chief Minister Mamata Banerjee is also present there, a meeting is currently underway
Rajeev Kumar's last public appearance:
- He attended the inauguration of the International Kolkata Book Fair in Kolkata where Banerjee was also present
- Seen at the stall put up by the city police, where the chief minister unveiled a number of books
The officials said Kumar apparently became apprehensive of his arrest after Bengali film producer Shrikant Mohita was taken into custody.
West Bengal Chief Minister Mamata Banerjee had earlier extended her support to Kumar and alleged that the BJP was "misusing power to take control of the police and all other institutions".
Timeline of the entire case:
- 2013: The SIT was set up by Chief Minister Mamata Banerjee after the multi billion rupee Saradha scam came to light, when the Saradha group's companies downed shutters across Bengal, unable to pay back the depositors.
- 2014: CBI took up the case on Supreme Court's order related to both Saradha and Rose valley ponzi scams
- January 2019: The CBI had last month arrested Bengali film producer Shrikant Mohta for his connection with Rose Valley chit fund case.
This is how Ponzi Scheme works:
An operator collects large amount of money from people i.e. the investors, and pay them the returns from the money collected from subsequent investors. Unlike normal investments where the money is returned to the investors with interest from the profit earned by the organisation, this scheme worked by the company luring people to invest by promising them to multiply it in short span of time.
The victims are led to believe that the profits are coming from product sales or other means, and they remain unaware that other investors are the source of profits.
Why is the scheme called as the Ponzi scheme:
A person named as Charles Ponzi became famous for duping people with the same technique in 1920s. Though he did not invent the scheme, he became famous for duping thousands into investing in a postage stamp speculation scheme.
