Tel. HC: Constitutional Validity of Section 38(2) of RP Act and Rule 5.7.1 of ECI’s Handbook Upheld  ||  MP HC: Power Exercised u/s 319 of CrPC Must Come Before Acquittal Order in Case of Joint Result  ||  Del. HC: Order of CIC Directing CBDT to Give Information Regarding Ram Janmabhoomi Trust Set Aside  ||  Ker HC: In Non-Performance of Agreement, Buyer to Get Charge Over Property For Paying Purchase Price  ||  Rajasthan High Court: Reinstate Ayurvedic Doctors Who Haven’t Attained 62 Years of Age  ||  Rajasthan High Court: Accrual Time For Taxing Income to Be Postponed Till Dispute’s Adjudication  ||  Supreme Court: Distributor Not An Agent But An Independent Contractor  ||  Ker. HC: No Member of Hindu Public Can Claim to Perform Services That Only Archakas Can Perform  ||  Bom HC: Emp. to Ensure That Minor Mistakes Due to Candidate’s Disability Shouldn’t Lead to Job Loss  ||  SC Criticises Centre For Not Specifying Range of Rates For Treatment in Pvt. Hospitals & Clinics    

Banning of Unregulated Deposit Schemes and Protection of Depositors’ Interests Bill, 2015 - (03 May 2016)



The suggestion period for ‘Banning of Unregulated Deposit Schemes and Protection of Depositors’ Interests Bill’ may have closed on 30 April 2016, but what do the proposals promise?

The Bill is a culmination of measures suggested by an Inter-Ministerial Group identifying gaps in the existing regulatory framework for ‘deposit taking’. Basically, it bans entities not supervised by any regulator or government body from taking deposits.

Unregulated deposit schemes, like pyramid schemes, have been used to swindle depositors out of enormous sums of money. The Saradha chit fund in West Bengal and PACL are examples of schemes that have solicited thousands of crores of rupees from investors looking for ‘big returns’ in a short time. The schemes are usually allied with other ‘promises’ such as a job or property to lure investors.


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