Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2018        Go!    
 
 
September 23, Sunday 2018 11:37 PM       

       HEADLINES: Franco Mulackal should be subjected to lie detector test, says police                                              Fr. Mathew Manavath raises allegation against Kerala BJP                                              Body of toddler found                                              Bishop brought to Kuruvilangad convent, evidence collected                                              CM reaches office                                              PM Modi to launch Ayushman Bharat today                                              PM to inaugurate Sikkim's first airport Monday                                              Japanese supply ship heads to space station after delays                                              Russia warns US it is 'playing with fire' with sanctions                                              Pak PM Imran hits out at India, calls its response "arrogant" for cancelling talks                                              Gavaskar impressed with Rohit Sharma's captaincy                                              Hasan, Asghar, Rashid fined 15 per cent of their match fees                                              Kaumudi Facebook
       CITYNEWS Next Article: Gold seized  
       Pravasi chit fund flouting Central laws: Mani
 
         Posted on :09:26:07 Jul 9, 2018
   
A A
       Last edited on:09:26:07 Jul 9, 2018
         Tags: Pravasi chit fund, flout, Central laws, Mani
 

THIRUVANANTHAPURAM: Kerala Congress leader and former Finance Minister K M Mani has flayed the Pravasi chit fund scheme announced by the government, alleging that it violated the Central Chit Funds Act and the Foreign Exchange Management Act (FEMA). He accused Finance Minister T M Thomas Isaac of trying to bypass the Central Act and hoodwink expatriate Malayalis to part with their money. “The Minister seems to think that Kerala is an independent nation state where Central legislation does not apply.”

The press note said RBI regulations did not allow the Kerala Infrastructure Investment Fund Board (KIIFB) to handle the chit fund subscriptions or deposit amount.

The norms stipulate that only licenced banks could handle the money. KIIFB, not being such a bank, cannot accept funds relating to the scheme. It would be liable to pay a hefty fine for violation of FEMA regulations, he said.

Mani said the State government was trying to mislead customers by projecting the Kerala State Financial Enterprises (KSFE) as a miscellaneous bank on its website.

“Under the Central Act, KSFE has not been cleared to operate the Pravasi chit fund. Yet, it has invited applications for online registration under the scheme. This constitutes a punishable offence.” Observing that KSFE and KIIFB had spent lakhs to promote the scheme among expatriates, Mani said it constituted misuse of power and violation of laws. He also said subscribers would find it difficult to get their money back if it was used to fund the development of roads and other infrastructure.

Alleging that KSFE was holding back vital information on the scheme, the press note said the contract for the chit fund had no mention of the life insurance and accident insurance cover or pension announced by the government for subscribers. It also did not state that the amount paid by the members and the security would be handled by KIIFB.

Mani said the State government would require an amendment to the Chit Fund Act to operate the scheme through KIIFB. “The government could introduce a legislation in Assembly or issue a notification for the purpose in consultation with RBI. Launching the scheme without doing either will only cause distress to expatriate Malayalis.”

A A
       CITYNEWS
Next Article: Gold seized
 
 
CITYNEWS HEADLINES
Three held for Ranjith Johnson murder  
Suspects nabbed for murder  
Probe on right track, says Balan  
Hashish oil seized, two held  
Plus two student drowns  
Youth falls off train  
Bus workers call off strike  
Security guard found dead  
Man held on charge of couple’s murder  
Family goes missing, police to leave for TN  
Youth held on charge of burglary  
Student killed in accident  
Man arrested in POCSO case  
Work begins on foot overbridge at Pattom  
Additional KSRTC services from Kochuveli  
Tourists will soon flock to state, says minister  
Cong, CPI (M) activists clash at Kulathoor  
Youth held for blackmail  
Nun’s sister to protest  
Two held on attack on youth  
Jalandhar police serves notice to Bishop Franco  
Two get RI for abusing minor  
K T Sainaba dead  
Case filed against 22 CPI (M) workers  
Fire breaks out at public health lab  
 
Do you agree with Rahul's allegation against Modi over Rafale deal?
yes
 
no
 
no opinion
 
 
 
Home Kerala India World Business Sports Sci&Tech Education Automobile CityNews Movies Environment Letters 
© Copyright keralakaumudi Online 2011  |  Reproduction in whole or in part without written permission is prohibited.
Head Office Address: Kaumudi Buildings, Pettah P.O, Trivandrum - 695024, India.
Online queries talk to Deepu Sasidharan, + 91 98472 38959 or Email deepu[at]kaumudi.com
Customer Service -Advertisement Disclaimer Statement   |  Copyright Policy