Expedite bringing central law to curb ponzi menace: Par panel

To curb the ponzi menace, government should expedite the process for bringing a central law that will plug regulatory loopholes, a Parliamentary panel has recommended.
Observing that even now several cases of unauthorised collection of money and deposits are being reported, the committee said agencies concerned should work with "greater cohesion and coordination" to ensure concrete results at the ground level.
The observations are part of the report of the Standing Committee on Finance, headed by senior Congress leader Veerappa Moily.
"The committee would expect this proposed legislation to plug once and for all the regulatory loopholes, gaps and vaccum prevailing in the vast and expanding financial services industry," the report, tabled in Parliament today, said.

The committee is of the view that central law on unauthorised deposits and related matters "to be expedited so that a comprehensive Bill can be introduced in Parliament at least during the Winter Session later this year".
Currently, central economic intelligence bureau in the department of revenue and its regional economic intelligence councils along with state level co-ordination committees provide the necessary administrative structure for capturing information regarding ponzi schemes early.

"It would be better to attune, with strengthening if necessary, the already existing structure to address the problem of unauthorised deposit taking," the report said.
Besides, the committee noted that regulatory regime in respect of Multi-State Co-operative Societies (MSCSs) should be streamlined to protect the interest of small investors of these societies.

It should be streamlined so that they do not become an instrument of diverting and shielding illegal funds from ponzi companies.