Status Report in Chit Fund Scam – SARADA and others like scams

RBI - Central Bank of India
RBI - Central Bank of India

Status Report in Chit Fund Scam 

The following Status Report has been received from Regulators and Enforcement Agencies:

  • As informed by the Reserve Bank of India (RBI), 978 cases of unauthorized collection of funds were discussed in State Level Coordination Committee (SLCC) Meetings in various States/ UTs and were given to the respective regulators/ law enforcement agencies in the States for dealing with the complaints.
  • The Securities and Exchange Board of India (SEBI) has passed 64 Orders related to unauthorized Collective Investment Schemes (CIS) during the last 3 years (34 in 2015-16, 11 in 2016-17 and 19 in 2017-18).
  • SEBI also passed 35 Orders related to Deemed Public Issue of Equity (DPI) during the last 3 years (8 in 2015-16, 7 in 2016-17 and 20 in 2017-18).
  • As of February, 2018, the Enforcement Directorate (ED) has taken up investigations in 52 cases against Ponzi schemes floated by firms/ companies under the provisions of the PML Act, 2002, where small investors have been cheated.
  • As of February, 2018, the Central Bureau of Investigation (CBI) has registered and investigated 133 cases in the last 3 years (11 in 2015, 12 in 2016 and 110 in 2017) against various Ponzi companies for fraud and scams on the basis of complaints and also on the basis of directions of the Courts.

The Banning of Unregulated Deposit Schemes Bill, 2018 has been introduced in the Lok Sabha on 18.07.2018. The proposed Bill will ban all such deposit schemes which are unregulated.

This was stated by Shri Pon. Radhakrishnan, Minister of State for Finance in a Written Reply to a Question in Lok Sabha today.