BJP against ordinances, but Sinha for one on Ponzi scams

Even as the BJP is opposed to promulgating ordinance on food and land bills, its leader and former finance minister Yashwant Sinha wants the government to bring an ordinance immediately to check Ponzi scams.

Even as the BJP is opposed to promulgating ordinance on food and land bills, its leader and former finance minister Yashwant Sinha wants the government to bring an ordinance immediately to check Ponzi scams.

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At the meeting of the finance standing committee of Parliament on Friday, Sinha — the chairman of the panel — told officials of finance and corporate affairs ministry that he personally feels that the government must bring an ordinance to stop chit funds and all such companies from raising deposits from common people.

There is already a law to regulate chit funds, but in the wake of the recent ponzi scam in West Bengal that has already claimed as many as nine lives, the panel felt that the government needs to do more. Apart from top officials of finance and corporate affairs ministry, SEBI brass was also present.

In the meeting, MPs like Bhartruhari Mahtab and Gurudas Dasgupta urged officials to expand banking network to rural areas to prevent chit funds usurping money. MPs said SEBI should take pro-active steps to prevent such frauds.