Chit fund scam: New bill on protecting investor interest to have more teeth
Kolkata: Stringent measures, including seizure and confiscation of property, have been proposed to protect investors from money spooling companies in the much-awaited bill being moved by the West Bengal government following the Saradha Group scam.
Copies of the bill, to be moved by Finance Minister Amit Mitra tomorrow for consideration and passage, were circulated among members on the first day of a two-day special session of the Assembly on Monday.
The West Bengal Protection of Interest of Depositors in Financial Establishments Bill, 2013, has provisions for powers to enter premises and inspect documents and search and seizure and confiscation of property.
Though Parliamentary Affairs Minister Partha Chatterjee had yesterday said the bill will have retrospective effect, the word `retrospective` is not used in the bill.
But the bill says that a designated court which will look into these issues "may give direction to the competitive authority like the director of Economic Offences, for effective implementation of the provisions, sources said.
The bill has been framed to protect depositor interest, to regulate and to impose restrictions on such financial establishments to curb unscrupulous activities and to make liable every person, including promoter, partner, director, manager and employee, responsible for the management.
The competent authority shall, after making an assessment of the deposit liabilities, apply before the designated court from time to time seeking permission for making payment to depositors from out of the money realised.
The designated court shall be presided by a judge to be appointed by the state government with concurrence of the chief justice of the Calcutta High Court.
The earlier West Bengal Protection of Depositors Interest Bill 2009 introduced by the previous Left Front government on December 22, 2009 will be withdrawn.
More from India
More from World
More from Sports
More from Entertaiment
- PM Modi visits Lord Jagannath temple at Puri
- Boyfriend murders DU student Arzu Singh; hides body in his house for three days
- International Fleet Review: India shows off naval prowess in "Operation Demo"
- Can comments on social media against politicians land you in jail?
- Declared unfit for employment, man invents cost-effective electric car called Pixie!
- PM Narendra Modi never disappoints his supporters, here's another example - see pic
- Year of the Monkey: Know how lucky you are according to Chinese calendar!
- WATCH: When PM Modi took his supporters by surprise, came to meet them standing on car's side foot step
- India vs Sri Lanka 2016, 1st T20I: Squads, date, time, TV listing, live streaming
- After prayers at Jagannath Temple, PM Narendra Modi inaugurates IOCL project at Paradip refinery