'GST rollout likely in 6 months'
Sushil Kumar Modi, Deputy CM of Bihar and GST panel head. (file photo)
Kolkata, April 27:
The rollout of Goods and Services Tax (GST) could happen in six months if the Centre agrees to compensate the revenue losses incurred by States.
According to Sushil Kumar Modi, Deputy CM of Bihar and GST panel head, revenue loss is one of the major concerns of States.
"If the Centre agrees to compensate the revenue losses incurred by States for a five-year period, then the GST can be rolled out within six months,'' Modi said at an interactive session organised by the Bharat Chamber of Commerce here on Saturday.
Manmohan calls for curbs on 'Ponzi schemes' as FinMin prepares to give SEBI more teeth
Prime Minister Manmohan Singh
New Delhi, April 27:
Amidst multi-agency action against chit funds such as Saradha, Prime Minister Manmohan Singh on Saturday called for curbing unauthorised collection of deposits, especially at very high interest rates.
The Finance Ministry, on its part, indicated that the Securities and Exchange Board of India will soon get more powers to check frauds in various kind of money raising schemes.
"Unauthorised collection of deposits in exchange for the promise that exorbitant rate of return will be given is something which has to be curbed," Singh said in response to a question on the chit fund bust in West Bengal affecting ordinary people. He was talking to reporters after an event in Rashtrapati Bhawan .
The Prime Minister's statement comes at a time when there a huge agitation and protest is going on against the West Bengal-based Saradha group, which dumped its depositors and agents after collecting money by luring them with very high interest rate offers. The Chairman and Managing Director of the group has been arrested and multiple agencies are probing into the matter.
In the meantime, the Finance Ministry hinted at acting upon SEBI's demand for more power. On January 18, the board of the market regulator approved a proposal for more power and sent it to the Finance Ministry for further action.
According to meeting agenda, it was mentioned that SEBI had recently faced new challenges in regulation of pooling of monies from the public by various schemes that could be in the nature of collective investment schemes but do not strictly fall within the definition provided in the SEBI Act.
With this, the SEBI proposed that it be assigned more powers to check unregulated money raising schemes similar to the Collective Investment Scheme. Its other proposals included powers to attach assets/properties without recourse to the court of law and search and seizure powers without recourse to the court of law.
All these require amendments in three legislations — the Securities and Exchange Board of India Act, 1992, the Securities Contracts (Regulation) Act, 1956 and the Depositories Act, 1996.
The effort is to bring all types of schemes collecting more than Rs 100 crore from the public under SEBI's ambit. Though the Finance Ministry would prefer to introduce amendments in Parliament as early as possible, the current political developments may delay the process.
Hence, the Finance Ministry may take the ordinance route to pacify people affected by chit funds. These funds usually take advantage of multiple regulations.
Crackdown on
The Finance Ministry said that SEBI, the Reserve Bank of India, the Income-Tax Department and the Enforcement Directorate had begun a crackdown on Ponzi schemes and initiated action against the Saradha group under various laws, including the Prevention of Money Laundering Act.
SEBI has launched prosecution in 59 cases of Collective Investment Schemes, while the Ministry of Corporate Affairs is also investigating the Saradha Group for violation of various laws, the Ministry said in a release.
Besides, the Enforcement Directorate has registered a case of suspected money laundering activities against the Kolkata-based group and others, including its chief Sudipta Sen.
The statement comes in the wake of reports highlighting concerns regarding alleged illegal raising of deposits, especially in rural and semi-urban areas in eastern India.
"Promoters of such companies are allegedly siphoning the monies collected and are using a sales network comprising local persons who are offered hefty commissions, in a manner similar to Ponzi schemes," the release said.
Who will look after to curb? Why is there in law, The Companies Act 1956?
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