Since the assured returns scheme has been declared to be banned it has received many mixed reactions from people across the nation. Although, the scheme is said to be a futuristic measure and an excellent move that ensures the safety of an investor from the developer. Earlier the duping was a prevalent thing that used to take place in the absence of any stable framework that could actually prohibit the builders and developers by the limited ground for them to work in referring it as illegal beyond it.
The market has been in chorus towards the scheme ban stating that the move will now onwards protect future investors, however, all those who've put in their money in such schemes in the past, the scheme ban will be interesting to see that how basically this measure will help people. Commenting on the current scenario of the scheme ban, experts said that whatever was done in the past was illegal too but none was penalized for it because the liability of whatever is illegal is obviously prospective. So it probably may not offer any protection to people who have already invested in these schemes.
Discussing the scheme, Pankaj Bajaj Eldeco stated that "this is a Ponzi scheme. You are taking debt from the public as a public deposit and that was not regulated. This practice was common mostly among Grade b and Grade c developers who were otherwise not getting access to capital from formal channels. Builders who were cash-strapped and wanted to finish the project through this route fell into this trap. These schemes were also mostly pushed by brokers as it was an easy sell for them.”
Having said that, it is suggested that it will not impact even 5 percent of the market also, since RERA exists now, this scheme ban is said to be an essential part of the RERA audit checklist. The assured return scheme ban is said to be the reason behind creating a chaos in the market due to its prior investments made by people.
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