Bill to check ponzi schemes introduced in Lok Sabha

Ponzi scheme, illegal deposit, Lok Sabha, Finance Minister Nirmala Sitharaman, The federal, English news website
Finance Minister Nirmala Sitharaman. Photo: PTI.

A Bill which seeks to tackle the menace of illicit deposit-taking activities in the country was introduced in Lok Sabha on Friday (July 19).

The Banning of Unregulated Deposit Schemes Bill, 2019 will replace the Banning of Unregulated Deposit Schemes Ordinance, 2019. The bill seeks to 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 poor and gullible people of their hard earned money, according to the government.

The bill was introduced by Finance Minister Nirmala Sitharaman amid noisy protests by Congress members over the ongoing political crisis in Karnataka. The proposed legislation will have adequate provisions for punishment and disgorgement/repayment of deposits in cases where such schemes nonetheless manage to raise deposits illegally.

The banning of Unregulated Deposit Scheme Bill, 2018 was considered by the Lok Sabha in February and after discussion, the same was passed. However, before the same could be considered and passed in the Rajya Sabha, the House was adjourned sine die on the same day.