Buds Act
The Banning of Unregulated Deposit Schemes Act, 2019, is a law in India that aims to protect people from falling victim to illegal and fraudulent deposit schemes. It prohibits businesses or individuals from collecting money from the public without proper authorization or regulation. This includes schemes that promise unrealistic returns or guarantees, such as a sure-shot pass in an exam or a guaranteed seat in a medical college. Coaching classes or institutions that take money from students or their parents, claiming they can secure them admission to a specific college, fall under this category if they don’t have proper approval to collect such deposits.
The Act imposes strict penalties on anyone running or promoting such unregulated schemes, including hefty fines and imprisonment. It protects people by ensuring that only regulated entities can collect deposits, making it harder for fraudsters to exploit students or investors. By targeting those who make false promises and manipulate people's hopes, the law ensures that all deposit activities follow legal safeguards and that people’s money is not misused or lost in fraudulent schemes.
By CA L.Muralidharan and CPA L.Mukundan
Visit www.sreeramcoachingpoint.com for more blogs & www.lmgcute.com
Contact: 6383228202 or 9884439769
Also download our app Gyanji for more utility and benefits
Best place of coaching for CPA, CMA USA & CA
