An amendment proposed to the Prevention of Money Laundering Act (PMLA) may soon help in expeditious restoration of investments made by crores of people who have fallen victim to Ponzi schemes and chit-fund scams.
The change suggested in Section 8(8) will allow the PMLA courts to consider claims for restoration of such confiscated assets during the trial. Earlier, as provided in the 2015 amendment, restoration could be made only at the end of the judicial process.
List of scams
Topping the list of Ponzi schemes is the PACL scam in which over 5.50 crore investors were cheated of ₹49,000 crore on the promise of huge returns from investments in farmland. The Pearls Group, whose managing director Nirmal Singh Bhangoo was arrested by the CBI, had roped in 23 lakh agents and brokers to lure investors. The agents were paid ₹10,000 crore in commission. It is alleged that the funds were diverted to front companies and accounts abroad. The Enforcement Directorate has attached properties worth hundreds of crores, including one in Australia.
In the Saradha scam, which allegedly involved several politicians, lakhs of small-time investors in eastern India were cheated on the promise of phenomenal returns. Funds were collected through 200 companies and their agents. The alleged mastermind, Sudipta Sen, and other accused are being prosecuted.
In a similar case, known as the Rose Valley chit-fund scam, investors from West Bengal and Odisha were robbed of their hard-earned money through the companies allegedly set up by the mastermind, Gautam Kundu, and his associates. Irregularities to the tune of ₹17,000 crore were detected.
