Don't charge money launderers with chit fund offence

With such charge, launderers may get away by 'refunding' money to investors who never existed

Another chit fund has been raided at a time when there is an unstable political situation in a particular state. Irregularities worth hundreds of crores have been found and investors might see their life’s savings wiped off.

It is amusing to see central agencies acting against these entities only when there is some political capital to be harvested. These entities take root and grow in front of everyone’s eyes, often blatantly violating rules and norms. Yet, action comes only when they are big enough to ruin a few hundred lives.

As the ‘good’ chit fund sector often argues, regulated funds