Government has decided to set up a Special Task Force under its Serious Fraud Investigation Office (SFIO) to probe complaints of irregularities by Chit Fund Companies. The move comes in the backdrop of controversy over West Bengal based Saradha group companies over allegations of defrauding of investors. The decision was taken following a meeting held this morning by the Corporate Affairs Minister Sachin Pilot with the senior officials. AIR correspondent reports, the alleged scam at Saradha group is said to have defrauded thousands of investors, including poor people, in West Bengal and Assam.

Assam Government has retierated to move to the CBI against some companies for swindling public money.

Saradha group chief Sudipta Sen has been brought to Kolkata after being arrested in Kashmir valley two days ago. He alongwith two others has been remanded to 14 days police custody. In a related development, North Bengal based owner of Chit Fund company was last night arrested at Shyamnagar in North Parganas district of West Bengal .

According to police 72 lakh rupees cash was recovered from him. Reports from Assam and West Bengal say that a large number of depositors staged demonstrations against the company for losing their precious deposits.

Meanwhile, the Congress and the CPI-M today demanded a CBI enquiry into the multi-crore Saradha chit fund scam in West Bengal. The party alleglled the Trinamool Congress government in the State is shying away from taking responsibility for the scam .

While demanding the CBI probe into the scam the CPI- M urged the state government to confiscate all properties of Saradha Group to pay off the thousands of small investors who were left in the lurch.