SHILLONG: The State Government has banned prize chits and money circulation schemes in consultation with Reserve Bank of India.
A notification relating to Meghalaya Prize Chits and Money Circulation Scheme ( Banning) Rules 2015 in this regard was laid in the Assembly by Chief Minister Mukul Sangma on Wednesday.
As per the notification, there is prohibition to promote, run, or participate in money circulation scheme, compensation plan and inducing enrolment of new members. There will be inquiry by police if there are violations of the rule and the violators can be prosecuted.
The notification said that if a promoter commits default, “he shall within a period of six months from the date of such default refund the money and subscriptions collected till the date of default”.
