Chit funds: SC notices to Centre, SEBI, ED

The Supreme Court Tuesday issued notices to the Centre, SEBI, Enforcement Directorate and others on a PIL seeking to put in place a statutory regime for regulating chit funds in the country.

A Bench led by Chief Justice P Sathasivam sought responses from all parties in four weeks on a PIL filed by NGO Humanity Salt Lake, which has also demanded a CBI inquiry into Saradha and other chit fund scams. The PIL asked for creation of a statutory authority vested with adequate powers to regulate companies dealing with chit funds.

Advocate Prashant Bhushan, appearing for the NGO, submitted that there has been inaction on the part of the government in regulating chit funds resulting in multiple scams across the country. He said that chit fund companies were collecting money from the public in violation of laws and that needed to be checked.

The petition has pleaded for constitution of an expert committee of SEBI, RBI, Finance Ministry, Enforcement Directorate and SFIO.

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