Uttar Pradesh government today approved the draft of a bill which seeks to safeguard interests of investors in finance companies and firms attracting investments on the promise of good returns.
The state cabinet today approved the draft of UP protection of depositor's interest security bill, 2015, having the provision of jail term up to ten years and attachment of property of the people of the financial institution and others connected with it in case they fail to return the money.
According to informed sources, the bill also provides for appointment of officials for controlling the finances of such companies, attachment of the properties of those belonging to the company in case of irregularities in the deposited money and jail term up to ten years and fine of Rs 10 lakh in case of conviction.
Amid cases of fraud by companies collecting money on the promise of providing good returns, government through the bill will be able to deal with such issues effectively, they said.
The bill could be tabled in the ongoing session of the Vidhan Sabha.
The state cabinet also approved wheat purchase target of 30 lakh tonnes for the Rabi season 2015-2016, sources said. It also approved setting up one purchase centre each within the radius of four km, they added.
