According to a PIL filed in the apex court chit fund companies are collecting money from the public in violation of laws and this need to be checked
The Supreme Court on Tuesday issued notices to the union government, Reserve Bank of India (RBI) and market regulator Securities and Exchange Board of India (SEBI) seeking their response on chit fund issues.
A Bench headed by Chief Justice P Sathasivam asked the government and the regulators to file their response within four weeks on a public interest litigation (PIL) for putting in place a proper mechanism to regulate the functioning of chit funds in the country.
Advocate Prashant Bhushan, appearing for ‘Humanity Salt Lake’, an NGO, submitted that there has been inaction on the part of the Government in regulating chit funds resulting in multiple scams across the country.
He submitted that chit fund companies were collecting money from the public in violation of laws and that needed to be checked.
The petitioner referred to various chit fund scams including the recent multi-crore Saradha chit fund scam in West Bengal and pleaded before the apex court for its intervention in the matter to prevent the recurrence of such cases.
After hearing the submissions, the Bench agreed to look into the matter.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
A good move. Better late than never. Jai Hind