Cabinet clears bills on chit fund, labour code

The government said the bill replaces the Banning of Unregulated Deposit Schemes Ordinance, 2019.

Information and Broadcasting Minister Prakash Javadekar
Information and Broadcasting Minister Prakash Javadekar

New Delhi: In a move to check chit-fund like scams, the Union Cabinet on Wednesday approved a key bill banning unregulated deposit schemes in the country. The bill titled  Banning of Unregulated Deposit Schemes Bill, also aims to tackle all kinds of illicit deposit-taking activities.

The government said the bill replaces the Banning of Unregulated Deposit Schemes Ordinance, 2019.

The Cabinet also approved a bill seeking to merge 13 central labour laws into a single code, which would apply on all establishments employing 10 or more workers.

Talking to reporters after the Cabinet meeting, Information and Broadcasting Minister Prakash Javadekar said that people have been suffering due to chit-fund scams in India.

An official statement said, “The bill will help tackle the menace of illicit deposit taking activities in the country, which at present are exploiting regulatory gaps and lack of strict administrative measures to dupe poor and gullible people of their hard earned money.”

The proposed legislation, it said, will have adequate provisions for punishment and disgorgement or repayment of deposits in cases where such schemes nonetheless manage to raise deposits illegally.

The Cabinet meeting was chaired by the Prime Minister.About the labour code, the statement said, “The proposed Code on Occupational Safety, Health and Working Conditions Bill, 2019, would enhance the coverage of workers manifold.”

The proposed code enhances the coverage of workers manifold, as it would be applicable to all establishments employing 10 or more workers, where any industry, trade, business, manufacture or occupation is carried on, including IT establishments or establishments of service sector.