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The Odisha government is gearing up to attach properties of unscrupulous finance companies that have duped more than half a million depositors through collective investment schemes.
To facilitate the action, the state government has recently framed the rules for implementing the Odisha Protection of Interests of Depositors (in Financial Establishment) Act,
"We have framed the rules under the Act. Now, the government is fast tracking steps to attach properties of the fraudulent firms and also to return the money of the depositors. Four additional district judges of Cuttack, Balasore, Sambalpur and Berhampur have been declared as designated courts. Moreover, the additional district magistrates (ADMs) of these four districts have been declared as the competent authorities. These ADMs are empowered to take steps for attachment of properties”, said U N Behera, additional chief secretary (finance) told reporters.
The Odisha Protection of Interests of Depositors (in Financial Establishment) Act contains extensive safeguards for protecting the small investors from the malpractices of fraudulent financial entities.
Also, it has various provisions to take stringent action against the offenders.
Widespread incidents of embezzlement of public money by shady institutions threw the government into a tizzy besides brewing widespread public resentment.
Though the state assembly had passed the Bill in 2011, it was awaiting the President's nod which was obtained in August this year.
