The West Bengal Government has decided to set up a corpus of Rs. 500 crore to help the investors who have been duped by the Saradha chit fund. Announcing this in Kolkata on Wednesday evening the Chief Minister Mamata Banerjee said that the high level enquiry commission which has been formed to investigate the scam will recommend to the government on the modalities on the pay back.

AIR correspondent reports, the State government will impose additional 10 percent tax on tobacco products to raise funds to help the chited investors.

The Chief Minister Ms. Mamata Banerjee said that the government will soon release advertisements in the media on hearing of the enquiry commission at different districts on the chit fund scam. A

special session of the state Assembly will also be convened soon to pass a fresh legislation to deal with chit fund companies and to protect the interest of investors. The state also witnessed a series of protests by the depositors and agents of the Saradha Group at different areas. T
The owner of the company Sudipto Sen and two others accused are being brought to Kolkata on transit remand tonight after their arrests in Kashmir.

This follows a Court in Kashmir granting four-day transit remand to Kolkata police to take them to West Bengal. The trio were detained from Sonamarg area on Tuesday.

Sudipto Sen has been accused of defrauding thousands of depositors. Along with director Debjani Mukherjee and another company official Arvind Singh Chauhan, Sen was presented before Chief Judicial Magistrate of Ganderbal, Parvez Hussain Kachroo, who granted the transit remand.

Lakhs of investors of the Chit Fund group have hit the roads alleging they have been duped of over Rs. 30,000 crore.

Hundreds of agents of the company have also been rendered jobless.The bubble burst after capital market regulator SEBI started cracking the whip on chit fund companies for flouting rules, triggering pressure on the group's finances.

The West Bengal government has formed a Special Investigation Team and a high-level inquiry into chitfund companies after the collapse of Saradha group.

Assam government is considering recommending a CBI enquiry into the chit fund company issue. State Home Secretary G D Tripathi said on Wednesday that government is committed to take strict action against cheating thousands of investors by a chit Fund Company.

Assam Chief Minister Tarun Gogoi on Wednesday held a meeting with DGP and other senior officials in Guwahati and discussed the situation that arose after Saradha Group of Companies duped investors across the state.

Meanwhile, protest continued in several parts of the state against the company with angry mob ransacking offices of the company.

Income Tax department is to probe investments and finances of Kolkata-based Saradha group, which allegedly defrauded thousands of depositors.

The department will probe the group even as it is investigating five other similar cases of this kind in West Bengal since last year.

Sources in the department said showcause notices for production of documents and recording of statements of promoters, investors and prominent
agents in this case could be issued soon.