The State Government had as far back as in March 2011 received a report from the Centre regarding illegal money circulation schemes run by the Seashore Group, but it sat over the file for reasons better known to it.
Before any hue and cry had taken place regarding the chit fund scam, the State had received the confidential report from the Central Economic Intelligence Bureau of the Department of Revenue functioning under the Union Ministry of Finance. But no action had been taken against the company immediately, as a result of which the company duped investors of around Rs 1,500 crore.
On the other hand, the State Government had signed MoUs with the tainted firm instead of seizing its properties.
A top official of the Central Economic Intelligence Bureau in a confidential letter to the Chief Secretary of the State on March 22, 2011 had informed that the Seashore Group had collected deposits from the public through its main company Seashore Securities ltd. “During the search, it was detected that the depositors were lured by the company by offering very high interest rates, etc. But the interests paid have been shown in the accounts as dividend and has been paid out of the deposits only. As such, the company had no commensurate business income to make such huge interest payments,” the officer said.
The officer had also warned the State Government that the company was running a money circulation scheme and the amount paid out as dividends was to the tune of Rs 99.85 crore and was wrongly shown as expenditure in the accounts.The State Government had even reportedly received another confidential letter from the Financial Intelligence Unit (FIU) of the Ministry of Finance on February 29, 2012 regarding the suspicious transaction of the Seashore Group’s bank accounts in several other major towns of the State.
Finally, after getting a few complaints lodged by investors against the company in first half of the 2012, the State Crime Branch woke up from its slumber and began seizing accounts of the company in the month of July 2012.
“If the State Government had earlier received some confidential information regarding the company, why it didn’t try to uncover the truth behind the illegal money circulation schemes of the chit fund firm,” question activists.