Odisha to frame rules for implementing depositors` bill
Odisha government on Tuesday said it would soon frame rules for early implementation of the law.
Bhubaneswar: Welcoming Presidential assent to the Odisha Protection of Interests of Depositors (in Financial Establishments) Bill, the state government on Tuesday said it would soon frame rules for early implementation of the law.
"We will soon frame rules so that a number of investors allegedly duped by different ponzi funds can get back their investment," Finance Minister Prasanna Acharya told reporters soon after President Pranab Mukherjee gave assent to the Odisha Protection of Interests of Depositors (in Financial Establishments) Bill.
Stating that the new law will come as a major tool for the state government to take on the fraudulent money circulation companies, the finance minister said properties of the ponzi companies can be confiscated and auctioned by the authorities.
"Now the investors can hope to get back their money," Acharya said, adding, the new law will protect interest of the depositors and had extensive safeguards for protecting small investors from fraudulent financial entities in Odisha.
The state Assembly had passed the Bill on December 17, 2011 and sent to the Ministry of Home Affairs (MHA) from the Governor`s secretariat on April 3, 2012.
After examination and inter-ministerial consultation, the MHA had sought some clarifications from the state government on the Bill on December 27, 2012, which the state sent to the MHA on April 2, 2013.
After thousands of investors were duped by the fraudulent companies in the state, Chief Minister Naveen Patnaik had recently sought the intervention of the Union Home Minister for an early Presidential assent to the Bill protecting depositors` interests.