December 13, 2013
`Protection of Interest of Depositors in Financial Establishments Bill` passed in West Bengal Assembly
The West Bengal Protection of Interest of Depositors in Financial Establishments Bill, 2013 was passed by the West Bengal Assembly. Finance Minister Amit Mitra said that the Bill contained more stringent provisions than the earlier legislation of the same name in bringing to book unscrupulous financial companies.
He said that the Bill, after its enactment, would ensure the security of the funds of the investors.
Dr Mitra said that it is constitutionally valid, and not in conflict with SEBI Act and is in line with similar Bills moved in 15 states and two Union Territories. This Bill is armed with the provisions of search, seizure and confiscation of property, he added.
The “financial establishment“ would have to file all periodical statements to the competent authority which would share the information with SEBI, Registrar of Companies and the Reserve Bank of India, inviting a closer scrutiny.
While some Saradha investors have already been paid by the Justice Shyamal Sen Commission, many of those who had put in funds in Sanchaita during the Left Front regime are still moving around in desperation.
If the state government finds that money or property is not available for attachment or is insufficient for the repayment of the deposits, it can inter alia attach the personal property of a person who has borrowed money from such financial establishments to the extent of his default, the finance minister said.
