 "Odisha to frame rules for Investor Protection Act")
After obtaining the President’s assent to ‘Odisha Protection of Interests of Depositors (in Financial Establishment) Bill -2011’, the state government has geared up to implement the provisions.
“We are trying to frame the Rules soon for the Odisha Protection of Interests of Depositors (in Financial Establishment) Act. The Rules will be framed in consultation with the law department. They are meant for implementing the provisions of the Act,” said a senior finance department official.
Meanwhile, a team of officials of the economic offences wing of crime branch as well as the state finance and law departments is on a tour to Tamil Nadu to study the implementation model of the legislation enacted by that state to protect interests of small depositors.
Though the state government had launched a crackdown into alleged duping of public money by Saradha Group and Artha Tatwa Group and a host of lesser known entities, it cited that stern action could be taken against the guilty only after getting the President’s nod to the Bill.
Chief Minister Naveen Patnaik had been persistently requesting the Union home ministry to obtain President’s assent for the Bill.
In his last letter to central home ministry on May 20 this year, stated, “The aforementioned Bill contains extensive safeguards for protecting the small investors from the malpractices of fraudulent financial entities. In view of the urgency, I am drawing your personal attention for expediting the Presidential assent to the Bill so that we can firmly and effectively deal with the frauds being perpetrated by unscrupulous financial establishments.”
In his letter, the chief minister had expressed concern over fly-by-night operators taking advantage of the prevailing regulatory weaknesses and gaps to lure the unsuspecting public by promising them unrealistic returns on their investments.
To probe the multi-crore chit fund scam, the state government had constituted an enquiry commission headed by retired Chief Justice of Sikkim High Court R K Patra. A corpus fund of Rs 300 crore was also announced to give relief to the genuine small investors who have lost their money in the scam. As per government estimates, 650,000 people have been duped to the tune of Rs 4,375 crore between January 2012 and June 2013, by the chit fund companies operating in the state. The state police and crime branch have taken action against 127 firms, filed 280 cases and arrested more than 300 persons for involvement in the illegal money making schemes.
“We are trying to frame the Rules soon for the Odisha Protection of Interests of Depositors (in Financial Establishment) Act. The Rules will be framed in consultation with the law department. They are meant for implementing the provisions of the Act,” said a senior finance department official.
Meanwhile, a team of officials of the economic offences wing of crime branch as well as the state finance and law departments is on a tour to Tamil Nadu to study the implementation model of the legislation enacted by that state to protect interests of small depositors.
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The Bill — Odisha Protection of Interests of Depositors (in Financial Establishment) - 2011 that recently got the President’s assent, will arm the state government to to initiate punitive action against the offenders. Recent incidents of embezzlement of public money by shady institutions threw the government into a tizzy besides brewing widespread public resentment.
Though the state government had launched a crackdown into alleged duping of public money by Saradha Group and Artha Tatwa Group and a host of lesser known entities, it cited that stern action could be taken against the guilty only after getting the President’s nod to the Bill.
Chief Minister Naveen Patnaik had been persistently requesting the Union home ministry to obtain President’s assent for the Bill.
In his last letter to central home ministry on May 20 this year, stated, “The aforementioned Bill contains extensive safeguards for protecting the small investors from the malpractices of fraudulent financial entities. In view of the urgency, I am drawing your personal attention for expediting the Presidential assent to the Bill so that we can firmly and effectively deal with the frauds being perpetrated by unscrupulous financial establishments.”
In his letter, the chief minister had expressed concern over fly-by-night operators taking advantage of the prevailing regulatory weaknesses and gaps to lure the unsuspecting public by promising them unrealistic returns on their investments.
To probe the multi-crore chit fund scam, the state government had constituted an enquiry commission headed by retired Chief Justice of Sikkim High Court R K Patra. A corpus fund of Rs 300 crore was also announced to give relief to the genuine small investors who have lost their money in the scam. As per government estimates, 650,000 people have been duped to the tune of Rs 4,375 crore between January 2012 and June 2013, by the chit fund companies operating in the state. The state police and crime branch have taken action against 127 firms, filed 280 cases and arrested more than 300 persons for involvement in the illegal money making schemes.