NEW DELHI: A bill proposing ban on unregulated deposits and up to 10-year jail term for perpetrators of ponzi schemes was introduced in the Lok Sabha today.
The ‘Banning of Unregulated Deposit Schemes Bill, 2018, introduced by Minister of State for Finance Pon Radhakrishnan, provides for punishment for fraudulent default in repayment to depositors and attachment of assets of entities engaged in such activities.
“The Bill seeks to put in place a mechanism by which the depositors can be repaid without delay by attaching the assets of the defaulting establishments,” said the Statement of Objects and Reasons of the bill.
Non-banking entities are allowed to raise deposits from the public under various laws enacted by the Central as well as state Governments. (AGENCIES)
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