Home ODISHA LATEST Notification of investor protection law ‘in 2/3 days’

Notification of investor protection law ‘in 2/3 days’

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finmin

OST Bureau

Bhubaneswar, Sep 25:

Finance minister Prasanna Acharya on Tuesday said the state government will be notifying the enactment of the Odisha Protection of Interests of Depositors (in Financial Establishment) -2011 Act in the  official gazette within the next 2-3 days to fast track chit fund cases and return money to the duped investors.

The Odisha Protection of Interests of Depositors (in Financial Establishment) -2011 Act, which received the assent of the President of India on August 13 this year, empowers the state government to initiate punitive action against the offenders.

“We have taken a decision to establish four designated courts where chit fund cases will be tried. The newly enacted law would ensure fast trial of these cases,” said Acharya.

Sources said the designated courts can take decision on auctioning the property of the defaulting companies and issue guidelines about distributing receipts among the investors.

Moreover, the new law has provisions that if the chit fund promoters are found guilty, they could be jailed for a maximum period of 10 years.

The government has already framed rules as per the law and has sought Odisha High Court’s permission to establish four designated courts at Bhubaneswar, Balasore, Sambalpur and Berhampur.

As per government estimates, about 6, 50,000 people have been duped to the tune of Rs 4375 crore between January 2012 and June 2013, by chit fund companies in the state. The state police and crime branch have initiated action against 127 firms, filed 280 cases and arrested more than 300 persons for involvement in the illegal money making schemes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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