Scrap Chit Fund Bill: Trinamool Congress
New Delhi: Trinamool Congress (TMC), the fifth largest party in the Lok Sabha, demanded to scrap the Chit Fund (Amendment) Bill, 2019 on Monday.
While discussing the Bill on the first day of the Winter session, TMC Lok Sabha MP Kalyan Banerjee launched a scathing attack on the government and said that there was no penal clause in the Act.
He added, "The House has passed the Banning of Unregulated Deposit Schemes Bill, 2019. Assent has been given. Is there any necessity to continue with the Chit Fund Act? All these provisions have been made in the Banning of Unregulated Deposit Schemes Bill, 2019. Now it has become an Act." He further emphasised that 'Chit Funds' have become 'Cheat Funds' and the common people are confused to understand the difference between ponzi schemes and chit Funds. "If chit funds are valid and ponzi schemes invalid, how will the common people be able to make a distinction about investment in chit funds and investment in ponzi schemes. The basic fundamental things are missing. That is misleading people."
Banerjee further accused the CBI for not investigating chit fund scams transparently and mentioned that despite the Supreme Court's direction not a single person from the regulatory agency like the Reserve Bank of India, SEBI and others were not called for investigation for Saradha case. He also gave the background of the Financial Establishments Bill, 2013. The Central government in 2014 raised a certain point, incorporating certain points in West Bengal Protection of Interest of Depositors in Financial Establishments Bill, 2013. They had pointed out certain lacunae in the Bill and made some suggestions, which were incorporated. Thereafter in 2015, that Bill was enacted. In 2015 the Hon'ble President of India, on the advice of the centre. Later, West Bengal chief minister Mamata Banerjee issued a total of Rs 251 crore worth cheques for due compensation to the depositors in distress of Saradha Scam. "But the investigation is pending from 2013 to 2019," the MP claimed.
The senior Trinamool leader and Supreme Court lawyer also accused the erstwhile ruling party of the state – Left, for indulging such ponzi scams in the state. "West Bengal has witnessed flourishing of chit funds from the late-70s, ever since the Left Front came to power. In 1979, the scam Sanchayita chit fund came to light. Overruling the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 as was passed by the Parliament, Sanchayita continued to operate in full swing with the patronage of some political leaders playing behind the curtain."
The Chit Fund (Amendment) Bill, 2019 was moved for passage in the Lower House by the junior finance minister Anurag Thakur on the same day.
