In a bid to save credulous investors from ponzi schemes, the Union Cabinet on Wednesday approved Banning of Unregulated Deposit Schemes Bill to tackle the menace of illicit deposit-taking activities in the country. The bill will replace the banning of Unregulated Deposit Schemes Ordinance, 2019.
"The bill will replace the ordinance promulgated on February 21, 2019, which will otherwise cease to operate after six weeks after reassembly of Parliament," according to the Cabinet statement.
The bill will help tackle the menace of illicit deposit-taking activities in the country, which at present are exploiting regulatory gaps and lack of strict administrative measures to dupe gullible people of their hard-earned savings.
Speaking to media after the Cabinet meeting, Information and Broadcasting Minister Prakash Javadekar said people are suffering due to chit fund scams.
In the last four years, the CBI has lodged about 166 cases related to chit funds and multi-crore scams, with the maximum in West Bengal and Odisha.
Among the provisions is a ban on unregulated deposit taking schemes, punishment and repayment of deposits in cases where such schemes nonetheless manage to raise deposits illegally.
The banning of unregulated deposit scheme was considered by the Lok Sabha in its sitting held on February 13, 2019 and after discussion, the same was passed, as amended through the proposed official amendments, as the banning of Unregulated Deposit Scheme Bill, 2019.
However, before the same could be considered and passed in the Rajya Sabha, the Rajya Sabha was adjourned sine die on the same day.
Edited by Chitranjan Kumar