Chit fund scam: Pilot pins hope on Companies Bill for transparency

New Delhi: The government today pinned much hope on the Companies Bill, which is pending in Parliament, to check investors and small-time depositors from being duped by enterprises or individuals.

"There are provisions in the Bill which seeks to bring transparency and compliance and prevent companies and individuals from cheating people by taking advantage of the loopholes in existing law," Corporate Affairs Minister Sachin Pilot told reporters outside Parliament. He said this while responding to queries about steps being taken to help investors affected by the multi-crore Saradha chit fund scam.

The Centre had last Thursday ordered an SFIO probe into the suspected misuse of public money by various chit fund companies. PTI[/caption]

Hoping that the Bill will be passed in the current session of Parliament, he said "our aim right now is to salvage the situation, to see depositors get the money back and help the West Bengal government in this endeavour." He said an inter-ministerial group can be set up for the consultation process.

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The Centre had last Thursday ordered an SFIO probe into the suspected misuse of public money by various chit fund companies in the wake of the alleged fraud by the Kolkata-based Saradha group. A special task force has been set up under the Serious Fraud Investigation Office (SFIO) to carry out all investigations into such companies.

PTI