In a bid to ensure a complete ban on the promotion or conduct of prize chits and money circulation schemes, the Haryana government has formulated Money Circulation Schemes (Banning) Rules-2022, which will come into force from the date of their publication in the official gazette.

A decision in this regard was taken in the state Cabinet meeting met under the chairmanship of Chief Minister Manohar Lal Khattar here on Wednesday.

The provisions of the ‘Prize Chits and Money Circulation Schemes (Banning), Act, 1978’ were made applicable to the state as per Section 13 of the Act and under this now the Money Circulation Schemes (Banning) Rules-2022 have been formulated.

According to an official statement issued after the Cabinet meeting, as per the Money Circulation Schemes (Banning) Rules-2022, no individual or company or firm or business association, in any form will promote, run or participate in money circulation schemes including a disguised money circulation scheme.

The Nodal Police Authority will be responsible for coordinating with other state governments, the Central government and agencies concerned under such government and the Reserve Bank of India (RBI) and will also be responsible for furnishing the information to the Reserve Bank of India in the format and periodicity as decided by the state government in consultation with the RBI.

On the conclusion of the investigation, if adequate evidence exists that a money circulation scheme is being run by a company or firm or business association in any form, the investigating officer, apart from prosecuting the case under the Prize Chit and Money Circulation Schemes (Banning) Act, 1978 (Central Act 43 of 1978), will forward a report to the competent authority, under intimation to the Nodal Police Authority, to take action for winding up such businesses.

In the case of companies and other business entities where such a power is vested in the Central government, the competent authority will forward a report with its recommendations to the concerned Ministry in the Central Government for initiating action for winding up the company.