SHILLONG: The State Government has introduced a bill to protect the interest of depositors in the state from fraud by financial institutions.
As per the bill introduced by Chief Minister Conrad Sangma in the Assembly on Friday, it has become necessary to have a strong law in the state to protect the depositors from the financial institutions operating in the state considering that fact that some of these financial institutions are unauthorised and mobilising funds from the depositors with fraudulent intentions.
The bill was introduced since the present law – The Meghalaya Protection of Interest of Depositors Act, 2006 – is not fully equipped to deal with such financial institutions. The new bill will repeal the 2006 Act.
While the bill specifies punishment clauses, it also has provision for setting up special courts to deal with fraud committed by financial institutions.
The bill states that the government may pass an ad-interim order attaching the properties purchased either in the name of the financial establishment or any other persons on default of return of deposits.
“Where any financial establishment defaults the return of the deposit or defaults the payment of interest on the deposit, every person including the promoter, manager, director or partner or an employee of the financial establishment will be punished with imprisonment for a term which may extend to ten years and with fine which may extend to Rs 1 lakh or both”, says the bill.
According to the bill, every financial establishment which commences or carries on its business in Meghalaya on or after the commencement of this Act, should submit a report relating to the details about its authority to the district collector and superintendent of police .
Any person or public in general aggrieved against any financial establishment receiving deposits from public may also file a complaint in writing specifically mentioning the nature of allegations against the financial establishment to the deputy commissioner or officer not below the rank of the Superintendent of Police, CID for causing inquiry and investigation.
The Meghalaya Essential Services Maintenance (Amendment) Bill, 2018 and the Meghalaya Societies Registration (Amendment) Bill, 2018 were also introduced during the session.
The supplementary demands for grants and supplementary appropriation for the year 2018-19 were also presented by the chief minister.
Assembly Snippets
New MLAs welcomed
Speaker Donkupar Roy, on the first day of the autumn session on Friday, welcomed the new legislators, Pius Marwein, Miani D Shira, Marcuis Marak as well as the Chief Minister, Conrad Sangma.
Later, Sangma welcomed the new members.
Live telecast
Chief Minister Conrad Sangma termed the Autumn Session a historic day as the session is being telecast live on television. He thanked the Speaker for taking the initiative to this effect. The session will end on September 27.