Volume : 4, Issue : 4, April - 2015

Impact of Ponzi Schemes on Economy: A Study on West Bengal

Prof. Pijus Kanti Bhuin

Abstract :

<p> Following Commonwealth Games, 2G Spectrum, Coal Block allocation scams, India plunges into another Rs 1 lakh </p> <div>crore scam of money laundering in Eastern India – Ponzi Scam. The Bengal Ponzi business got a different dimension in </div> <div>the socio–economic environment due to the political patronage extended by few influential leaders of the running state </div> <div>government.</div> <div>The overall impact of Ponzi business in economy is hardly comprehended in naked eyes. The effects can be classified as direct and indirect. To </div> <div>analyse the effect on financial systems, an investigation on relationship between sate small savings and growth in state domestic product in </div> <div>agriculture sector made, which reveals a reasonably significant result. Discussions were made regarding how the Ponzi Business has shaken the </div> <div>lives of deceived people and created a financial crisis in the state economy.</div>