Overview
Default by registered chit funds and fraud by illegal deposit/Ponzi schemes are addressed under the Chit Funds Act, 1982 and the Banning of Unregulated Deposit Schemes (BUDS) Act, 2019, which bans unregulated deposit schemes and enables attachment and refund to depositors.
Key Provisions — Chit Funds Act, 1982 & BUDS Act, 2019
- The BUDS Act, 2019 bans unregulated deposit schemes outright.
- Authorities can attach assets and refund depositors.
- Registered chit funds are regulated under the Chit Funds Act, 1982.
- Cheating and criminal breach of trust apply to operators.
What You Can Claim
Recovery of deposited money
Attachment of operator assets
Criminal action against operators
Compensation where possible
How We Solve It
1
Document Deposits
We compile receipts, agreements, and payment proof.
2
Complaint to Authority
Complaint to the designated authority / police.
3
Legal Action
We pursue attachment and recovery under the BUDS Act.
4
Recover Funds
We pursue refund through the process.
Typical timeline: Varies with investigation and asset attachment; typically 6–24 months.
Frequently Asked Questions
Can I recover money from a Ponzi scheme?
The BUDS Act, 2019 allows attachment of operator assets and refund to depositors — recovery depends on available assets.
Are unregulated deposit schemes legal?
No — the BUDS Act, 2019 bans unregulated deposit schemes and penalises operators.