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Centre returns Mamata government's bill against Ponzi funds

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IANS Kolkata
Last Updated : Jun 07 2013 | 12:15 AM IST

The centre has returned to the West Bengal government the Bill passed by the state assembly in April to reign in ponzi firms.

Sources said the central government asked the state to correct a provision related to giving retrospective effect to the bill.

Union Finance Minister P. Chidambaram said earlier this week that his ministry had put in its comments on the legislation which would be soon sent back to the state government after seeking the opinion of other ministries.

The West Bengal Protection of Interest of Depositors in Financial Establishment Bill, 2013 was passed during a special session of the state assembly April 30, a fortnight after the Saradha Group scam broke out.

The legislation empowers officials to raid premises and search documents to seize and confiscate property.

The Mamata Banerjee led state government had brought the bill to control ponzi firms after the Saradha Group companies went bust mid-April, unable to repay lakhs of mostly poor depositors from rural areas.

Several heartbroken depositors and ponzi firm agents have committed suicide since the scam came to light.

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First Published: Jun 07 2013 | 12:07 AM IST

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