Be cautious when playing kootu funds, say lawyers 07 Feb 2021 / 14:15 H. Pix for representational purpose only.
KUALA LUMPUR, Feb 7: There is no doubt that the COVID-19 pandemic has disrupted the rice bowls of countless Malaysians.
In such a situation, many may be tempted to turn to the time-tested way of raising some hard cash through a kootu fund.
But several lawyers have advised the people to exercise caution when participating in kootu funds, lest they be caught on the wrong side of the law.
Lawyer Teeruvarasu K. Muthusamy said a kootu fund is loosely defined as a pool of money raised from contributions made by a group of individuals at regular intervals, on a weekly or monthly basis.