SRINAGAR, Oct 8:
The Legislative Assembly today passed a bill to deal with any unscrupulous activities of financial bodies and protect the interests of people in the State.
The “Bill to protect the interests of depositors of financial establishments and the matters connected therewith” was passed by the House with voice vote.
The bill was introduced in the House by the Finance Minister Abdul Rahim Rather on Friday.
Explaining the objectives of the bill, the Minister said “a large number of unknown and unauthorised 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,” he said.
The Minister said 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.
“This state of affairs has necessitated taking appropriate measures to curb the unscrupulous activities of such financial institutions in the State and to protect the interests of the Public at Large,” Rather said while replying to the bill.
He said 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. (PTI)
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