Delhi government introduces new regulations to safeguard citizens from financial frauds

In a bid to combat the rising cases of financial frauds in Delhi, the AAP government on Wednesday introduced new regulations aimed at safeguarding the citizens from fraudulent investment schemes. Announcing the regulations, Chief Minister Atishi emphasised a "zero-tolerance" stance against scammers who lure people with promises of high returns, an official statement said.

"For too long, people have been misled by fake schemes promising high returns, only to suffer financial losses. These rules will allow us to monitor these schemes closely and hold the fraudsters accountable," the chief minister said.

As per the statement, the new regulations grant Delhi government the authority to investigate and confiscate assets tied to fraud cases, targeting schemes like chit funds and fake high-return investment plans.



Accordingly, Delhi government will empanel specialised agencies to perform forensic and digital audits in suspected fraud cases with the authority to seize the assets involved, the statement said.

Previously, such asset confiscations were not permitted, limiting the government's ability to act effectively against the fraudsters, it added.

"By empowering agencies to investigate and prosecute, we can now act more swiftly and help the victims recover their funds," Atishi said.


The regulations also include provisions for self-help groups (SHGs), allowing them to continue legitimate financial activities without interference as contributions up to Rs 50,000 per month and Rs 5 lakh annually will be exempt from scrutiny, the statement said.

"This threshold ensures that honest, small-scale groups can operate freely while providing greater oversight for larger contributions," Atishi said.