CNSS sends suggestions for Chit Fund Amendment Act

Source: The Hitavada      Date: 12 May 2018 12:59:37


Staff Reporter,


Chhattisgarh Nagrik Sangharsh Samiti (CNSS) have sent suggestions for Chit Fund Amendment Act 2018 to the Parliament Standing Committee. Lok Sabha Speaker Sumitra Mahajan had sent the Chit Fund Amendment Act 2018 bill to the Standing Committee following pandemonium in the Parliament. The Committee will submit a report within 3 months. The Standing Committee is presided over by Dr M Veerappa Moily has former Prime Minister Dr Manmohan Singh as member among others.

Fighting for the rights of investors, CNSS General Secretary Shubham Sahu posted the written suggestions, demanding constitution of special court for disposal of Chit Fund cases. Special Court must complete hearings and pronounce the judgement within 6 months. Compensation to the investors should be paid by auctioning of property of Chit Fund Company. Investors may have to incur loss on the condition when company’s property worth lesser than its debts. Hence, Central and State Government should compensate the investors by forming special fund.

A Special Police team will be needed to trace and arrest the absconding Company Directors and a system should be in place to strike coordination between police of different states. Chit Fund companies should be mandated to submit monthly report about their property to Police and District Administrations. Companies must submit the names of Directors, their address and complete details with the District Administration. Even the politicians, administrative officers, and public servant should be taken to task on if they are found shielding the fake chit fund companies.