Lok Sabha refers bill to ban ponzi schemes to Par panel

The Lok Sabha today referred a bill seeking to ban unregulated deposit schemes to the parliamentary standing committee on the ground that it required thorough deliberations.

When the Banning of Unregulated Deposit Schemes Bill 2018 was taken up for discussion, the House, through a voice vote, decided to refer it to the Standing Committee on Finance.

Nishikant Dubey (BJP) said the ponzi schemes have defrauded gullible investors, particularly in many eastern states.

As ponzi schemes also involve state administration and other authorities, the legislation requires comprehensive study, he said, adding that the bill should be referred to the Standing Committee to make it more effective.

The bill is aimed at tackling the menace of illicit deposit-taking activities across the country.

Companies and institutions, running such schemes, exploit the existing regulatory gaps and lack of strict administrative measures to dupe the poor and gullible people of their hard- earned savings, the objective of the bill said.