Amendments to the banning of Unregulated Deposits Scheme bill approved |
There has been a lot of hue and cry over the economic offenders of the country with the likes of Liquor Baron Vijay Mallya, Diamond king NIrav Modi and Mehul Choksi. The govt in its attempt to curb such scams and frauds in future has approved the proposal for amendments to the Banning of Unregulated Deposit Schemes Bill, 2018. The amendments will further strengthen the bill to effectively tackle illicit deposit-taking activities, and prevent such schemes from duping the poor. The bill creates three different types of offences, namely, running of Unregulated Deposit Schemes, fraudulent default in Regulated Deposit Schemes, and wrongful inducement in relation to Unregulated Deposit Schemes. Union law minister Ravi Shankar, while giving details said `Bill provides for severe punishment and heavy pecuniary fines to act as the deterrent.` The bill provides for attachment of properties or assets by the Competent Authority and subsequent realization of assets for repayment to depositors. The Union Cabinet also cleared establishment of a unified authority for regulating all financial services in International Financial Services Centres in India through International Financial services Centres Authority Bill, 2019.
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