Need to regulate assured return schemes
The legal opinion on ‘assured returns’ scheme is that there is no statutory provision to regulate such investments. According to legal experts, when a contract between two people is violated, it becomes a civil offence. However, if such transactions are governed by statutory provisions, then the breach amounts to the violation of the provisions and is treated as a criminal offence.
Says supreme court lawyer SK Pal, “Generally, a breach of contract is a civil matter. If, however, someone is contracted to do something for which he or she has a legal obligation, then the breach of contract may also be a criminal act, though the actual breach is not criminal.”
Its high time Central and respective state governments passed a law to regulate such financial activities.