Mamata to bring new bill today to control chit funds
29 April 2013 7:36 AM IST
The West Bengal government has called a special session of the state assembly on 29 and 30 April for introduction of a new bill to contain the activities of chit fund companies. In a move by the Mamata Banerjee government to try contain the political fallout of Saradha chit fund scam, the new bill aims to crack down on sham deposit companies and is poised to have retrospective effect, also allowing confiscation of properties, a state minister said Sunday.
The West Bengal Protection of Interest of Depositors in Financial Establishments Bill, 2013 will have retrospective effect, state parliamentary affairs minister Partha Chatterjee said. The new bill will replace the earlier West Bengal Protection of Depositors Interest Bill 2009, introduced by the previous Left Front government, which was sent to the President but did not get his assent. The old bill has been sent back to the state government which will now withdraw it.
‘Once it becomes an act, the new legislation will be able to effectively deal with scams like the Saradha Group. The new bill will be more stringent and empower authorities to confiscate and not merely attach the assets of perpetrators of frauds,’ Chatterjee said. He added that under the previous bill, only establishments could be booked, but the new bill will empower the government to take action against individuals.
Meanwhile, the central government has alerted state governments and concerned agencies red-flagging over 250 suspicious banking transactions. Most of these transactions are related to Multi Level Marketing (MLM), also called ponzi schemes, which are swindles wherein quick returns on investments are offered.
Sources said that 272 such transactions have been sent to the Central Economic Intelligence Bureau (CEIB) by Financial Intelligence Unit (FIU)-India, an agency tasked with analysing and disseminating information relating to dubious financial transactions to enforcement agencies.
The West Bengal Protection of Interest of Depositors in Financial Establishments Bill, 2013 will have retrospective effect, state parliamentary affairs minister Partha Chatterjee said. The new bill will replace the earlier West Bengal Protection of Depositors Interest Bill 2009, introduced by the previous Left Front government, which was sent to the President but did not get his assent. The old bill has been sent back to the state government which will now withdraw it.
‘Once it becomes an act, the new legislation will be able to effectively deal with scams like the Saradha Group. The new bill will be more stringent and empower authorities to confiscate and not merely attach the assets of perpetrators of frauds,’ Chatterjee said. He added that under the previous bill, only establishments could be booked, but the new bill will empower the government to take action against individuals.
Meanwhile, the central government has alerted state governments and concerned agencies red-flagging over 250 suspicious banking transactions. Most of these transactions are related to Multi Level Marketing (MLM), also called ponzi schemes, which are swindles wherein quick returns on investments are offered.
Sources said that 272 such transactions have been sent to the Central Economic Intelligence Bureau (CEIB) by Financial Intelligence Unit (FIU)-India, an agency tasked with analysing and disseminating information relating to dubious financial transactions to enforcement agencies.
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