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The Great Bengal Crash - I
The sudden collapse of the Saradha group in West Bengal testifies to the dark side of finance capital. With the group defaulting on payments and winding up its media business recently, and investors demanding their deposits, the collection agents of the group find themselves in a precarious situation. The agents are putting pressure on the chief minister, Mamata Banerjee, for her intervention for the recovery of investments in various schemes they had marketed in the districts with attractive commissions.
The sudden collapse of the Saradha group in West Bengal testifies to the dark side of finance capital. With the group defaulting on payments and winding up its media business recently, and investors demanding their deposits, the collection agents of the group find themselves in a precarious situation. The agents are putting pressure on the chief minister, Mamata Banerjee, for her intervention for the recovery of investments in various schemes they had marketed in the districts with attractive commissions.
The common business strategy of chit fund owners is to invest in media business to gain legitimacy in the public mind. The ministers are often seen in public with the proprietors/managers of the chit fund/media business. The chit fund companies are found to distribute their magazines/newspapers free to the poor depositors in rural and semi-urban areas of Bengal to earn their trust. The Saradha group is no exception in this regard.
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