Delhi govt comes up with stronger rules to prevent financial fraud

CM Atishi approved news rules designed to protect people from fake investment schemes that make false promises and defraud individuals in the name of returns.

New Delhi: Acting tough on fraudsters trapping citizens through chit funds and promising high-returns for investments, Delhi government has now come up with stronger rules to prevent financial fraud, which includes allowing confiscation of assets of those involved in such incidents.

Chief Minister Atishi on Wednesday approved news rules designed to protect people from fake investment schemes that make false promises and defraud individuals in the name of high returns, a statement said.

“For a long time, people have been lured by false promises of high returns, only to face losses in the end. Through these new rules, the Delhi Government will keep a close watch on such fraudsters,” Atishi said.

The Delhi government now has the authority to empanel specialised agencies for forensic and digital audits for investigating cases of fraud and seizing assets involved. This will enable the government to detect fraud more swiftly and help victims recover their funds, officials said.

"Now, agencies working with the government will assist in identifying, investigating, and prosecuting fraudsters,” Atishi said.

Under the new rules, the Delhi Government has introduced a ceiling on contributions to self-help groups (SHGs) to support their genuine activities while preventing potential misuse. 

Contributions up to Rs 50,000 per month and Rs five lakh per year by each SHG member will be exempt from the new regulations.

"This measure will allow small and legitimate groups to continue their activities without interference, while keeping larger deposits under government scrutiny. This will ensure that their activities remain unaffected, while preventing misuse," Atishi added.