SC: Amendments to Government Orders Must Be Construed Fairly to Prevent Hardship  ||  SC: Divorce Settlement Waiver Bars Revival of Monetary Claim under DV Act  ||  Supreme Court: Plaint Cannot Be Rejected Where Ad Valorem Court Fee Depends on Disputed Facts  ||  SC: Bail in Serious Offences like Murder Cases Must be Supported by Clear and Justifiable Reasons  ||  Gauhati HC: Legal Heir Not Made Party Can Challenge Ex-Parte Succession Certificate  ||  Allahabad HC: Hijab Not Essential Islamic Practice, Rejects Plea to Wear It With School Uniform  ||  Gauhati HC: 24-Hour Limit for Magistrate Production Starts From Initial Detention under NDPS Act  ||  Gujarat HC Orders Human Verification of AI-Generated Case Law in Tax Orders, Warns of Contempt  ||  Madras HC: Pending Domestic Violence Case Alone Cannot Curtail Husband’s Right to Travel Abroad  ||  Rajasthan HC: Son’s Coparcenary Claim Fails without Proof of Hindu Undivided Family    

Cabinet approves Banning of Unregulated Deposit Schemes Bill, 2019 to curb illicit deposit taking activities - (10 Jul 2019)

Civil

The Union Cabinet, chaired by the Prime Minister has approved the banning of Unregulated Deposit Schemes Bill, 2019. The bill will replace the banning of Unregulated Deposit Schemes Ordinance, 2019 promulgated on 21stFebruary, 2019. The Bill will help tackle the menace of illicit deposit taking activities in the country. These activities are exploiting regulatory gaps and lacks strict administrative measures. The poor and the financially illiterate people are most vulnerable and soft targets of these schemes, as they could not identify its bonafides and become easy targets.

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. The Bill provides for severe punishment and heavy pecuniary fines to act as deterrent. The Bill has adequate provisions for disgorgement or repayment of deposits in cases where such schemes nonetheless manage to raise deposits illegally. The Bill provides for attachment of properties / assets by the Competent Authority, and subsequent realization of assets for repayment to depositors. Competent Authority by the State Government will be designated to ensure repayment of deposits in the event of default by a deposit taking establishment.

Pursuant to the recommendations of the Standing Committee on Finance (SCF), The Union Cabinet, chaired by the Prime Minister, has given its approval to move official amendments to the Banning of Unregulated Deposit Schemes Bill, 2018. The Banning of Unregulated Deposit Schemes Bill, 2018 was introduced in Parliament on 18th July, 2018 and was referred to the SCF, which submitted its Seventieth Report on the said Bill to Parliament on 3rd January, 2019. The Centre’s approval will further strengthen the Bill in its objective to effectively tackle the menace of illicit deposit taking activities in the country, and prevent such schemes from duping poor and gullible people of their hard earned savings.

Tags : BILL   APPROVAL   SCHEMES   ILLICIT DEPOSIT  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved