Union Cabinet clears draft law to curb menace of ponzi schemes

Seeking to curb the menace of ponzi schemes, the Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday gave its approval to the Banning of Unregulated Deposit Schemes Bill, 2019. The proposed law would address the issue of illicit deposit-taking activities, as it provides for strict action against such activities.

The new Bill will replace the Ordinance promulgated in February this year which will otherwise cease to operate after six weeks of re-assembling of the Parliament.

The draft law has been brought in the wake of alleged duping of lakhs of financially illiterate people by Saradha and Rose Valley chit funds in West Bengal, Odisha and other states. Investigating agency CBI has filed several cases in the alleged scam.