The Orissa High Court on Tuesday issued a notice to the State Government to file its counter on a petition which has challenged the Constitutional validity of enactment of the Odisha Protection of Interests of Depositors (in Financial Establishment) Act of 2011 and subsequent Rules framed on it in 2013.
A Division Bench headed by Chief Justice Vineet Saran issued the notice to the Government after holding preliminary hearing on the petition filed by te Seashore Securities limited represented by its MD Prashant Kumar Dash, who is now in jail custody.
The Act was enacted with an aim to arm the Government to initiate punitive actions against the offenders, who have embezzled public money by floating shady financial establishments and luring the public to invest in their companies by promising huge returns in limited timeframe.
Stating that the Act is oppressive, arbitrary, discriminatory and ultra vires of the Constitution and was enacted in bad faith besides being totally unreasonable, the petitioner has urged the High Court to strike down the Act, thereby declaring it as ultra vires to the Constitution.
The petitioner has further prayed the court to quash the Odisha Protection of Investors Interest Rules-2013 by declaring the same as excessive and beyond the powers of legislative as it infringes several Articles of the Constitution. The matter has been posted for next hearing on August 2.