New regulations to safeguard citizens from financial frauds

New Delhi: The AAP government in Delhi, under the leadership of Chief Minister Atishi, has announced a series of new regulations aimed at tackling financial frauds and fraudulent investment schemes that have been deceiving citizens. These regulations, approved on Wednesday, are designed to offer greater protection to the public, focusing specifically on the so-called ‘Chit Funds’ and fake high-return investment schemes that have plagued many residents in the Capital.

Addressing the issue, Chief Minister Atishi said, “For a long time, people have been lured by false promises of high returns, only to face losses in the end. Through these new rules, the Delhi Government will keep a close watch on such fraudsters.”

The newly approved framework empowers the Delhi government to take stringent action against fraudsters, including investigations, asset seizures, and the use of specialised forensic and digital audits to expose financial crimes. Previously, authorities lacked the power to confiscate assets linked to fraudulent activities, making it difficult to effectively deal with financial fraud. Under these new provisions, such assets can now be seized, providing a more robust mechanism for holding perpetrators accountable.

In a key feature of the new rules, the government has set a clear ceiling on the contributions that self-help groups (SHGs) can accept, which aims to balance the need for genuine support while preventing misuse. Contributions up to INR 50,000 per month and INR 5 lakh per year from each SHG member will be exempt from the new regulations. CM Atishi noted, “This will ensure that their activities remain unaffected, while preventing misuse.”

The government also plans to empanel specialised agencies to assist in identifying, investigating, and prosecuting fraudsters. “Agencies working with the government will assist in identifying, investigating, and prosecuting fraudsters,” Atishi emphasised. These measures are expected to significantly enhance financial transparency and curb fraudulent activities, safeguarding the public and ensuring that small, legitimate groups can operate without fear of exploitation. With this initiative, the Delhi Government aims to restore public confidence and create a safer financial environment for all citizens.