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

Volume : IV, Issue : IV, April - 2015

Prof. Pijus Kanti Bhuin

Following Commonwealth Games, 2G Spectrum, Coal Block allocation scams, India plunges into another Rs 1 lakh

crore scam of money laundering in Eastern India – Ponzi Scam. The Bengal Ponzi business got a different dimension in

the socio–economic environment due to the political patronage extended by few influential leaders of the running state

government.

The overall impact of Ponzi business in economy is hardly comprehended in naked eyes. The effects can be classified as direct and indirect. To

analyse the effect on financial systems, an investigation on relationship between sate small savings and growth in state domestic product in

agriculture sector made, which reveals a reasonably significant result. Discussions were made regarding how the Ponzi Business has shaken the

lives of deceived people and created a financial crisis in the state economy.