Saradha chitfund
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Misery for India 'Ponzi scheme' savers

2 May 2013 Last updated at 03:26 BST

In India, hundreds of thousands of people lost their savings after a deposit-taking business - which was effectively a Ponzi scheme - went bust.

A Ponzi scheme, named after US financial trickster, Charles Ponzi, is a kind of pyramid selling scheme, where investment returns rely on money coming in from new joiners.

The money dries up when no more people can be persuaded to join.

Sameer Hashmi spoke to some victims of the latest such scheme, known as the Saradha chitfund scam, in the state of West Bengal.