New law will be made to rein in Ponzi scheme;

To tighten up the schemes against mobilization of deposits or non-tax laws, the Union Cabinet has approved a new bill, The Banning of Unregulated Deposit Schemes Bill, 2018.

New Delhi: In order to crack down on deposit schemes run by hoax or non-law law, the Union Cabinet has approved a new bill, The Banning of Unregulated Deposit Schemes Bill, 2018. After getting the law of the bill, such deposit collectors will have to pay a fine of up to 10 years of jail sentence and double the amount of the mobilized amount. It is expected that when the next Parliament session of Parliament will start next month, then this bill will be introduced in the Lok Sabha.

It is proposed under the bill that
any institution will not run an irregular deposit scheme either directly or indirectly, by advertising or by urging people. 
- In violation of this provision, at least three and a maximum of 10 years can be sent to jail. At the same time, the total wage collection will be equal to two times as fines 
- if an institution fails to pay back the money after completing the regular deposit scheme, then there is a provision for a sentence of up to seven years. Along with this, or there may be a penalty up to Rs 5 lakh to 25 crore rupees. 
Repeated criminals may have to face up to 10 years of imprisonment and may be fined up to Rs 50 crore.
If the offense proves to a company, then the respondent officer will be prosecuted at the time of the crime and he may have to go to jail. The officers will include the director of the company to the manager. 
- There is also provision for seizure of depositors to collect money. It will also have arrangements for dividing the wrong earned profits among the affected people. In technical language, this system is called discouragement. 
- The job of seizing property and helping the affected people will be within the deadline. 
- An online database will be created which provides complete information about non-law or non-regular deposits.

The Central Bureau of Investigation (CBI) estimates that about 68 thousand crore rupees have been collected from around 6 crore people across the country through illegal deposits schemes. Talking about the well-known Sharada Chitfun scam of West Bengal, alone alone, it has raised more than Rs. 24 crores of rupees from millions.

Money is being raised in different parts of the country by different names and by making fun of them in different ways. After this the government started the exercise of making a new law. Let us remind you that Finance Minister Arun Jaitley has said that in 2016-17 budget, there is a detailed legislation to curb illegal legalization.

You can call non-legal deposits by calling Ponzi scheme, Collective Investment Scheme, Multi Layer Marketing Scheme or any name, everything in common is common and it is a bluff of earning more than market trends. You can understand it anyway.

When the National Savings Certificate (NSC) or public provident fund (PPF) brought with government security is getting interest of 7.6 per cent, then you are given an annual interest rate of 18 to 24 per cent. This greed has not only illiterate but also well read educated people. However, in the last few years, there was talk of restraining such schemes from time to time, but after the Sharada Chitfund scam, the campaign got added.

The unlawful deposit scheme has been defined in such a manner, "A scheme or arrangement where a depository organization accepts such deposits as a business which is not regular."

Regular means here to register with an institution. One thing to note here is that registration of an institution does not allow the collection of deposits. Permission for deposits from SEBI or Reserve Bank, such as fixed regulators, is necessary.

Generally, many organizations, in the campaign to collect the registration of taxation from the Ministry of Corporate Affairs, propagate something like this that there is support from the government for such a deposit scheme and people get into Jhansi. So, let's see if there is a government permission for a deposit scheme, not just the institution.

The biggest problem now is that different regulatory regimes regulate different schemes. There are also many types of legal constraints. However, some time before the law was passed, SEBI approval was required to raise the amount of Rs 100 crore or more.

But the problem does not get completely disturbed. Apart from this, there is also a law called Prize Chits and Money Circulation Scheme (Banning) Act, 1978 to rein in the Ponzi scheme. It is the responsibility of the State Governments to implement this law.

But the bluffers broke it in such a way that after getting the company registered from the promoter of one state in another state, after raising the money from the third state invested in the fourth state. Now what state government will take action? In view of this, the Standing Committee of Parliament also recommended the removal of legal problems. The blueprint of the new law is the result of all these efforts.