Bill to check ponzi schemes in LS

PTI, Jul 19, 2019, 4:00 PM IST

New Delhi: A Bill which seeks to tackle the menace of illicit deposit-taking activities in the country was introduced in Lok Sabha Friday. The Banning of Unregulated Deposit Schemes Bill, 2019 will replace the Banning of Unregulated Deposit Schemes Ordinance, 2019.

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.