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Ban on unregulated deposit schemes: SC dismisses Karvy investors’ plea

The association contended that the Act should protect all the investors who have been cheated and not only those who invested after the law came into force in February 2019.

SC
A bench led by Justice UU Lalit while rejecting the plea gave liberty to the investors body to approach the high court on the issue.

The Supreme Court on Wednesday dismissed the Karvy Investors’ Association’s plea challenging validity of the Banning of Unregulated Deposit Schemes Act on the ground that it excluded from its ambit the deposits made before the Act came into force and not protecting people who had invested money in various Ponzi schemes before 2019.

A bench led by Justice UU Lalit while rejecting the plea gave liberty to the investors body to approach the high court on the issue.The association contended that the Act should protect all the investors who have been cheated and not only those who invested after the law came into force in February 2019.

“The cumulative effect of the provisions of the impugned Act are that, though it seeks to take care of individual investors, however either by oversight or deliberately, it has excluded persons such as the members of the petitioner association from its ambit and effect..,” the petition said.

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