Latest News

May 30, 2015

WB CM keen on stringent act to prevent chit fund malpractices

WB CM keen on stringent act to prevent chit fund malpractices

West Bengal Chief Minister Ms Mamata Banerjee on Friday said that her government was keen on framing a stringent act to prevent malpractices by chit fund companies and protect interests of the people in the state.

In her suo motu reply during Question Hour, the Chief Minister said that the West Bengal Protection of Interest of Depositors in Financial Establishments Bill, 2013, which was passed in the House by her government had received assent from President Pranab Mukherjee.

She, however, said that her government was not happy with a communication received through Raj Bhavan, referring to a condition for its implementation enshrined in a similar act in Tamil Nadu.

The provision in the anti-chit fund Act in Tamil Nadu said the offenders in such cases could be released on bail after paying fines, which, Banerjee said, would never be allowed in West Bengal.

The state government brought this Bill to enact a stringent legislation and thus strong punishment like life imprisonment was included in the bill.

The CM said that the state government had written to the Centre urging that at least the provisions of strong punishment, which was in the bill, should be restored, otherwise offenders in such financial crimes would get an escape route. She said that the state government was waiting for the reply from the Centre.

The Chief Minister also noted that if required, the state government was even ready to bring an ordinance on the issue in consultation with the Opposition in the House.

Finance Minister Amit Mitra elaborated the process, in the House, under which the bill had been passed till it received the President’s assent.

The next course of action on the Bill would be finalised following a discussion in the Business Advisory Committee meeting.