Le­gal view

Need to reg­u­late as­sured re­turn schemes

HT Estates - - NEWS -

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.

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