House committee sets sights on Ponzi schemes

After the Saradha chit fund scam, the mushrooming of Ponzi schemes has got the MPs worried. Parliament's standing committee on finance is all set to look into any possible loophole in the government's mechanism in checking such financial frauds. Saubhadra Chatterji reports.

After the Saradha Ponzi fund scam, the mushrooming of Ponzi schemes has got the MPs worried.

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Parliament's standing committee on finance is all set to look into any possible loophole in the government's mechanism in checking such financial frauds.

The panel, headed by BJP's Yashwant Sinha, has called two meetings on May 17 and 24 where top officials of finance and corporate affairs ministry, heads of regulators will appear to face questions from the MPs.

The decision comes in the wake of the recent ponzi scam fraud in West Bengal that has so far claimed 11 innocent lives.

Gurudas Dasgupta, a panel member and MP from Bengal says, "The panel may like to know how the centre is allowing these companies to grow and how the regulators like SEBI have performed their duty."

Besides finance secretary Arvind Mayaram, financial services secretary Rajiv Takru and corporate affairs secretary Naved Masood, SEBI chief UK Sinha boss SEBI and RBI governor Subbarao have been asked to come.

While the officers may be asked to provide a status report on the number of registered chit funds and their activities, they will also be asked if further strengthening of law is required.