Parminder Singh Dhindsa, Finance Minister, Punjab today issued instruction to all Additional Deputy Commissioners (Development) from all the districts to book all chit fund companies in state as Punjab Government has not authorized any chit fund company in Punjab
Presideing over a meeting of all Joint Directors, Institutional Finance and other senior officers concerned of the department. Additional Deputy Commissioner (Development) in all districts are designated as Joint Director Institutional Finance and Banking, Mr. Dhindsa said that this meeting has been especially convened to make them aware of the functioning of the Non-Banking Financial Companies (NBFCs), rights and responsibilities and also about the legal issues pertaining to these financial companies.Finance Minister further said that Under the Chit Fund Act 1982 (Central Act 1982), the government has notified Additional Deputy Commissioner (Dev.) as Joint Registrar of Chits. Presently there was no registered Chit Fund Company with the State Government. “Offences under this Act are cognizable and police can register cases under this Act” he added.
pulging the details, Mr. Dhindsa said that this meeting of ADC (Dev.)–cum-Joint Director, Institutional Finance has been called in view of various fraud cases which are being reported in media. He said that in Punjab also Government has come to know that such money collecting schemes, multi layer marketing schemes were in operation which was banned under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. In this meeting various preventive steps to stop such frauds were also discussed. All the enquiries were answered by senior officers of RBI and SEBI.Functions of Joint Director in reference to NBFCs have been clearly defined under the RBI Act and have been authorized by the Government to look into complaints/make applications before competent court to obtain necessary warrants and take such action as deemed necessary under Section 58 E of the RBI Act.
Regarding Non Banking Finance Companies, two types of companies have been registered by Reserve Bank of India. Category ‘A’ which are authorized to take deposits and other category ‘B’ companies which are not authorized to take deposits under the RBI Act. There are other unincorporated bodies which may along with NBFCs cheat the public by displaying their registration certificates with various regulators but are doing many unscrupulous activities to cheat the public, said a senior officer of RBI. Mr. Jaspal Singh, Secretary Expenditure was also present besides all ADC (D) of the state and senior officers of RBI & SEBI.