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Cabinet approves amendments to bill to check unregulated deposit schemes

The bill provides for severe punishment and heavy pecuniary fines to act as deterrent

Press Trust of India  |  New Delhi 

Ravi Shankar Prasad
Ravi Shankar Prasad

The Union Cabinet Wednesday approved proposals to amend the Banning of Unregulated Deposit Schemes Bill, 2018.

This will further strengthen the bill in its objective to effectively tackle the menace of illicit deposit-taking activities, and prevent such schemes from duping the poor, Law Minister said while briefing the media after the Cabinet meeting here.

The bill provides for severe punishment and heavy pecuniary fines to act as deterrent, he said.

It has adequate provisions for disgorgement or repayment of deposits in cases where such schemes nonetheless manage to raise deposits illegally, Prasad added.

The CBI has lodged about 166 cases in the last four years in chit funds and multi-crore scams, with the maximum in West Bengal and Odisha, he said.

First Published: Wed, February 06 2019. 21:15 IST
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