To Stop Financial Fraud, Delhi’s AAP Government Empowers Itself To Confiscate Assets – News18

Last Updated:November 06, 2024, 23:46 IST

Chief minister Atishi on Wednesday introduced the new rules that will allow the government to empanel specialised agencies for forensic and digital audits for investigating cases of fraud and seizing assets involved

The Delhi government has approved new rules to fight financial fraud in the national capital with an aim to protect people from fake investment schemes with false promises and defrauding individuals in the name of high returns. The government will now have the authority to take strict action in such cases, including investigations and asset confiscations.

Chief minister Atishi on Wednesday introduced the new rules that will allow the government 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.

So far, the government lacked the authority to confiscate assets in such cases, making it challenging to take action. This new framework aims to deliver justice to victims and eradicate fraud at its roots, an official statement said.

“…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…Now, agencies working with the government will assist in identifying, investigating, and prosecuting fraudsters,” the statement said.

Under the new rules, the Delhi government has introduced a clear 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 5 lakh per year by each SHG member will be exempt from the new regulations. This 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.

This initiative by the Delhi government is a significant step towards maintaining transparency in financial transactions and strengthening public trust, the statement added. The new regulations will help eliminate fraudulent schemes and create a secure financial environment, particularly benefiting small groups who are conducting honest work.

Last month, Delhi police arrested a man and his son for duping more than 200 residents of Rs 7 crore through a bogus investment scheme. They tricked the victims into investing money into a Ponzi scheme that promised high-interest returns. Several similar cases were also registered in the city. As per police data, on an estimate, close to 250 financial frauds were reported daily in Delhi on average.