Govt's new anti-fraud body to meet Thursday

Signaling it means business in curbing irregularities in the backdrop of multi level marketing Ponzi scams involving the Saradha Group, a new body set up by the government to check fraudulent investment schemes will meet for the first time on Thursday to thrash out ways and measures to strengthen the existing regulatory mechanisms and their enforcement.

Signaling it means business in curbing irregularities in the backdrop of multi level marketing Ponzi scams involving the Saradha Group, a new body set up by the government to check fraudulent investment schemes will meet for the first time on Thursday to thrash out ways and measures to strengthen the existing regulatory mechanisms and their enforcement.

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On May 1, 2013, HT had first reported on the setting up of the body.

The government move to set up a new body has also been prompted by the reported inaction on the part of government agencies and departments to act against such fraud schemes despite many warnings and alerts being sent by the Intelligence Bureau, income tax department, Financial Intelligence Unit (FIU) among others.

A top government official said the mandate of this body would include identification of such fraud schemes and erect a preventive mechanism that will nip such frauds in the bud before they can actually cheat the gullible public.

“This new body will also prevent government departments, agencies and the regulators from working at cross purposes which the finance ministry feels is happening on a considerable scale,” the official added.

Ministers are not members of this panel as it may be difficult for them to attend meetings at an early notice.

“That is why this body will be headed by the additional secretary (department of financial services) and will include joint secretary level officers from the corporate affairs ministry, Central Board of Direct Taxes, Securities and Exchange Board of India, Reserve Bank of India, Serious Fraud Investigation Office, etc,” the official said.

The body is also expected to discuss the demand by a Yashwant Sinha-headed Parliamentary Committee to impose a blanket ban on all such schemes promising unrealistic returns.