Clearer laws on tackling fraud schemes soon: Pilot
Pilot's comments come against the backdrop of global direct selling firm Amway's India Chairman William S Pinckney and two company Directors being arrested by the Kerala police over allegations of fraud.
Corporate Affairs Minister Sachin Pilot today said the government will remove as early as possible the ambiguities in laws aimed at tackling fraudulent investment schemes.
Also read: Amway India Chairman, 2 Directors sent to 14 days custodyPilot's comments come against the backdrop of global direct selling firm Amway's India Chairman William S Pinckney and two company Directors being arrested by the Kerala police over allegations of fraud."We (Corporate Affairs Ministry) will work closely with concerned ministries and industries to remove the ambiguity in the law (related to tackling ponzi and other fraudulent schemes) as soon as possible," Pilot told PTI.Commenting on the Amway incident, he said that it "is disappointing that such an eventuality came about." Pinckney, Malhotra and Budhraja, who have been given conditional bail, were arrested by the Wayanad Crime Branch (Economic Offences) wing from Kozhikode in connection with three fraud cases registered in Wayanad district.They were booked under the Prize Chits and Money Circulation Schemes (Banning) Act based on complaints filed by distributors in 2011. "While steps should be taken to crack down on fraudulent companies running dubious investment schemes, companies that are reputed and abiding by the law must be delineated," the Minister said."Such events (like Amway) might negatively affect the prospects of our country as an attractive investment destination," he noted.In the wake of Saradha fiasco in West Bengal, government has initiated a multi-pronged crackdown on companies running ponzi and fraudulent schemes besides making efforts to protect the interest of investors."While we take strong actions against ponzi schemes, we need to be careful not to create a vitiating atmosphere for reputed and law abiding companies," Pilot said. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
