Ruling out any new legislation to curb cheating of small investors in the State, Finance Minister Prasanna Acharya on Wednesday said the 2011 Bill which is awaiting the President’s assent is sufficient to deal with the situation.
Acharya was responding to a demand by opposition Congress for bringing a new legislation on the lines of West Bengal to deal with duping of investors by non-banking financial institutions (NBFIs) following the Saradha chitfund scam.
"We demand a stringent law to deal with such situation. The West Bengal Government has already passed a strong Bill in this regard," chairman of the Congress Media Cell Narsingha Mishra has said.
Acharya, however, ruled out any new legislation as the State Assembly in December 2011 had already passed the Odisha Protection of Interests of Depositors (in Financial Establishment) Bill, 2011. He said the Bill is pending for Presidential assent. "We have already submitted certain clarifications to the Centre in regard to the pending Bill," he said.
"Once the Bill gets the President's nod, the State Government can take steps against the NBFIs looting gullible investors," Acharya said.
The State Government formulated the Bill on the lines of a similar legislation in Tamil Nadu. "The Supreme Court has already validated the Tamil Nadu law. Therefore, our Bill should not face any legal hurdle," said Finance Secretary JK Mohapatra. The Bill has provision of confiscating properties of the companies found cheating people in the name of investment. The persons found guilty of cheating public is liable for 10 years of imprisonment besides penalty, Mohapatra said.