Seeking to sternly deal with the ponzi menace, the Government has proposed imprisonment of up to 10 years and fine of up to `50 crore under a new draft bill for those running illicit money deposit schemes. All unregulated deposit schemes are sought to be covered under the new law, which has also proposed strict penal and monetary provisions for the offenders.
The draft bill, which has been finalised as per recommendations of an Inter-Ministerial Group, provides that any offender shall be punishable with imprisonment for minimum term of one year which may be extended to 5 years and with fine which may extend to `10 lakh.
In case of repeat offenders, the draft bill proposes imprisonment for a minimum term of 5 years which may be extended to 10 years and fine extended to `50 crore.
Public comments have been sought till April 30 on the proposed law, named Banning of Unregulated Deposit Schemes and Protection of Depositors’ Interests Bill.