<h1>India Cracks Down on Illegal Money Schemes; Investigates Companies Under Prize Chits Act, 1978 and Companies Act, 1956.</h1> The Ministry of Corporate Affairs in India has addressed complaints against numerous companies involved in illegal money circulation schemes promising high returns. These activities contravene the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. The Ministry of Finance, in collaboration with the Reserve Bank of India, has issued Model Rules to clarify the illegality of such schemes, urging state governments to prosecute offenders. The Ministry of Corporate Affairs has initiated investigations into seven companies and is scrutinizing others for potential violations of the Companies Act, 1956. Additionally, investor awareness programs are being conducted to protect small investors.