Panaji (GOA) In a major decision, the BJP-led government has proposed to make the act of financial institutions fraudulently defaulting to make payments to its depositors as cognizable offence.
Chief Minister Manohar Parrikar on Thursday late evening introduced the Goa Protection of Interests of Depositors (In Financial Establishments) (Amendment) Bill 2017 before the State Legislative Assembly.
The Bill seeks to insert a new section 13A to the Goa Protection of Interests of Depositors (In Financial Establishments) 1999 so as to make provision for offences under the Act to be cognizable.
The Bill seeks to make liable the promoter, partner, director, manager or any other person or any employee of financial establishment for punishment in case such financial establishment fraudulently defaults in payment of depositors.
For this, the Bill seeks to substitute section 5 of the Goa Protection of Interests of Depositors (In Financial Establishments) 1999.
“The Bill also seeks to amend section 7 of the Act so as to empower Special Court for attachment, sale, realization of property in respect of fraudulent financial establishments,” the Bill reads.
The financial institutions will have to file their reports and returns to the District Collector.
“The amendments are as per the model bill received from the Reserve Bank of India for strengthening the enforcement mechanism and fill the gaps that exist in the Act,” the Bill stated.
Team TNV