How a new Ordinance will protect you from Saradha-like ponzi schemes

It has provisions for repayment of deposits to gullible investors trapped by schemes which raise funds illegally

The Union Cabinet on Tuesday cleared an ordinance that seeks to tackle the menace of ponzi schemes such as the alleged Saradha Group chit fund scam and Rose Valley ponzi scheme. 

The Unregulated Deposit Schemes Ordinance, 2019, will "immediately tackle the menace of illicit deposit-taking activities", a government release said. 

The related Bill prescribes monetary penalty which could be as high as Rs 50 crore and a jail term of up to 10 years for duping depositors.

The bill will identify three different types of offences — running of unregulated deposit schemes, fraudulent default in regulated deposit schemes, and wrongful