Bill to protect depositors to be tabled next week

Our Bureau Updated - March 12, 2018 at 04:03 PM.

Harsher punishment, seizure of assets on cards

West Bengal Chief Minister Mamata Banerjee at a review meeting with state ministers in Kolkata on Friday.

The West Bengal Government will convene a special session of the Legislative Assembly to introduce a Bill seeking to protect depositors from money-collection schemes here.

The special session is likely to be convened on April 29. Following the customary obituary references on the first day, the Bill will be tabled for approval on April 30, West Bengal Chief Minister Mamata Banerjee told reporters here on Friday.

It is likely to be named Interest of Depositors in Financial Establishments Bill 2013.

The decision came to the forefront after the collapse of the Saradha Group that was involved in money collection schemes in West Bengal, Odisha, Jharkhand and Assam. Unconfirmed reports suggest that the group collected over Rs 20,000 crore through various schemes until it went bust.

“We will table the Bill next week. It will protect investors’ interest,” Banerjee said.

According to Banerjee, the new Bill will seek harsher punishment terms for those accused of cheating depositors. The Bill will also seek to seize assets of the accused.

“I cannot reveal more details in this regard as the Assembly has been called,” Banerjee said.

Recall of Previous Bill

An all-party meeting was convened at the Legislative Assembly earlier in the day by Speaker Biman Banerjee.

According to the Chief Minister, a Bill introduced by the former Left Front Government – the Protection of Depositors in Financial Institutions Bill 2009 – has been recalled. The Bill was awaiting Presidential assent.

“What we will introduce is a far stronger Bill,” Banerjee said, alleging that the previous Left Front Government had deliberately kept loopholes in the Bill since it was hand-in-glove with these money collection companies.

Compensation

Banerjee further added that the Commission headed by Justice Shyamal Sen to probe into the Saradha money collection scam and other similar companies is likely to be operational from next week.

An advertisement relating to its formation will soon be made.

“People can register their complaints with them,” Banerjee said.

Based on the recommendations of the Commission, compensation will be handed out to those duped by the Saradha scam.

“We need to ascertain the quantity of money collected and how much is actually due. We do not have any figures yet,” Banerjee told reporters.

> abhishek.l@thehindu.co.in

Published on April 26, 2013 16:03