A Bill passed by the Odisha assembly to secure interests of small depositors has finally got the Presidential assent.
The Bill- Odisha Protection of Interests of Depositors (in Financial Establishment) -2011 envisages to arm the state government 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.
"We expect to implement the Bill within a month. The government will frame rules after due vetting by the law department and designated courts will be declared to deal with cases of financial fraud", said state finance minister Prasanna Acharya.
Though the state government had launched a series of crackdown on a host of chit fund companies including offices of big names like Saradha Group, Seashore and Artha Tatwa, which were accused of duping public of crores of rupees, 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 facilitate early approval of the Bill. In his last letter to Central home minister in May 20 this year, he said, "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".
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. After passing the Bill in December 2011, the state government had sent it to the Central home ministry on April 3, 2012 for securing President's assent. The Union home ministry after due examination and inter-ministerial consultation, sent the Bill back to the state government in December 2012, seeking some clarification. Accordingly, the state government submitted its compliance on April 2 this year.
To probe the multi-crore chit fund scam, the state government has constituted an enquiry commission headed by retired Chief Justice of Sikkim High Court RK 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 4375 crore between January 2012 and June 2013, by the chit fund companies 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.
