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Bill to outlaw chit funds, money-circulating operations approved by Haryana Cabinet

To stop innocent people from falling prey to their ponzi schemes, the Haryana government has decided to ban chit funds and money circulation companies. After the new regulations are announced, companies, firms, people, and business organisations engaged in the money circulation industry will not be able to attract investment in the state. The choice was made during a cabinet meeting on Wednesday that was presided over by the chief minister, Manohar Lal Khattar.

The Haryana Dhan Parisancharan Yojana (Banning) Act, 2022 has received approval from the cabinet. According to the chief minister Manohar Lal Khattar, these regulations would take effect as of the publication date in the gazette. For the purpose of enforcing the new regulations, the police department will coordinate with other agencies in addition to the Reserve Bank of India.

In accordance with the Money Circulation Schemes (Banning) Rules-2022, no person, company, firm, or business association, in any form, will promote, run, or participate in money circulation schemes, including a disguised money circulation scheme, according to an official statement released following the Cabinet meeting.

Additionally, a nodal officer will be created to investigate crimes involving money circulation schemes. According to the Chit Mulay Avam Dhan Parishancharan Yojana (prohibition) Act, 1978, if a company, firm, or business organisation is found guilty of cheating people, severe sanctions will be imposed.

It is important to note that there is still a network of chit fund companies spread throughout the state. In the past, scams run by chit fund businesses like Golden Forest LS and Future Maker, in which thousands of people were duped into making investments, have come to light.

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