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Chit Fund Bill gets Prez nod

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OST Bureau

Bhubaneswar, Aug 13:

The President of India Pranab Mukherjee has given his assent to the Odisha Protection of Interest of Depositors (in financial establishments) Bill, 2011, state government sources said today.

The state government has claimed it would help protect the interests of investors in the state while punishing fraudulent chit fund companies.

The Odisha Assembly had passed the Bill on December 17, 2011 and had sent it to the Ministry of Home Affairs 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 government 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.

The Bill would help plug the existing loopholes in the law and provide extensive safeguards for protecting small investors from fraudulent financial entities. It has the provision of confiscating the movable and immovable property of chit fund companies and punishing the fraudsters.