Agartala: Considering poor performance of small savings and institutional finance over past two fiscals. The Tripura Government has reiterated stringent law to combat growth of Non Banking Financial Companies (NBFC) in the state.
State Finance Minister Badal Choudhury said here today Tripura had earned only Rs 140 crore in 2009-10 and Rs 187 crore in 2010-11 from small savings while NBFCs managed to earn more than Rs 12000 crore from the state in past three years.
“The existing laws are not sufficient to stop such illegal financial business of the NBFCs unless Ministry of Finance, Reserve Bank of India (RBI), Insurance Regulatory Development Authority (IRDA) or Securities and Exchange Board of India (SEBI) do not make coordinated effort,” Mr Choudhury said.
He, however, stated that the state government had very limited scope against NBFCs under Indian Panel Code (IPC) and Criminal Panel Code (CrPC) because unless any individual or group files case with evidence of cheating the existing laws could not be enforced.
“Small savings have received a serious jolt as NBFCs started luring the innocent people with high rate of interest and as a result, small savings were affected severely,” he said, adding NBFCs had 216 offices in the state at present and a few of them had started media houses.
Meanwhile, during his last visit to Tripura, Reserve Bank of India (RBI) Governor Dr D Subba Rao had made it clear that they did not allow any NBFIs to do business in the state while requesting the state government to proceed for legal action as per IPC and CrPC provisions against unauthorised agencies.
He had maintained that NBFIs operating in Tripura were not recognised by RBI, IRDA and SEBI and they could not do any monetary business or take deposit from people.
Northeast witnessed sudden growth of unauthorised NBFIs over past few years, who took deposits from people promising abnormally high rates of interest.
On the other hand, opposition Congress blamed the ruling CPI-M for the situation, stating the Assembly had passed Tripura Protection of Interest of Depositors (In Financial Establishment) Act 2000 but even after a decade government did not take any action against any such institution.
“It is evident that the chief minister and other ministers are attending NBFCs programme and patronising them and what is even more dangerous is that the ruling party leaders in the villages and semi-urban pockets are having NBFC agencies,” alleged Leader of the opposition Ratan Lal Nath, adding CPI-M party had been funded by NBFCs. (UNI)