Corporate Affairs Minister Sachin Pilot said that government is making all efforts to ensure that entities do not misuse existing loopholes to defraud investors.
Responding to queries on actions initiated by the government and other regulators to curb fraudulent investment schemes in the wake of Saradha scam, Pilot said, " Finance Ministry, Corporate Affairs Ministry, Sebi and RBI, all of us are making sure that whatever gaps existed or whatever is existing, no entity or company is able to misuse those loopholes."
"Our foremost endeavour should be to make sure that losses are minimum to the people who have invested (in fraudulent schemes).... Our priority is to recover as much money (lost by investors)," the Minister said on the sidelines of a Competition Commission of India (CCI) event.
According to Pilot, the Chit Funds Act 1982 is enacted by Parliament and enforced by the state government. Every state government has a Registrar of Chits to which every chit company must register with, he added.
"So the compliance, regulation and any action that needs to be taken on chit funds violating the laws really stands in the jurisdiction of state governments but we are there to help and support any effort that the state governments make," the Minister noted.