Excelsior Correspondent
SRINAGAR, Oct 8: Jammu and Kashmir Legislative Assembly today passed a Bill to protect the interests of depositors of financial establishments. The Bill was introduced in the House by the Minister for Finance and Ladakh Affairs, Abdul Rahim Rather the other day.
Explaining the objectives of the Bill, the Minister said “a large number of unknown/unauthorized financial establishments started their business in the State in recent years and closed their activities soon thereafter, duping the gullible public of hard earned saving worth tens of crores of rupees.”
Most of these establishments turned out to be bogus and their sole aim was to loot the general public. The modus operandi employed by these establishments was to offer fanciful returns on deposits and commercially impossible low interest rates on loans for which they would charge handsome service charges in advance he said, adding the promoters of these bogus financial establishments fled from the state, leaving thousands of innocent citizens in a quandary, not to speak of getting returns as promised, these firms defaulted even in the return of the principal sums of the depositors and advance service charges taken from the loanees.
This state of affairs has necessitated taking appropriate measures to curb the unscrupulous activities of such financial institutions and to protect the interests of the public at Large, he said, adding “the legislation aims to achieve this end by prescribing stringent punishment for such wrong doings by bogus financial establishments, besides providing for the attachment of their properties etc.”
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