NEW DELHI: The Union Cabinet Wednesday approved Banning of Unregulated
Deposit
Schemes Bill with an aim 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 proposed legislation is likely to be introduced in Parliament during the ongoing session.
Talking to reporters after the Cabinet meeting, Information and Broadcasting Minister
Prakash Javadekar said people are suffering due to chit fund scams.
"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 poor and gullible people of their hard earned money," an official release said.
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, it added.
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
Rajya Sabha was adjourned sine die on the same day.