Cuttack: The Orissa High Court today issued notice to the state government to file counter on a petition challenging the constitutional validity of a legislation that arms the state to initiate punitive action against those embezzling public money by floating shady financial firms and subsequent rules framed on it in 2013.
A Division Bench headed by Chief Justice Vineet Saran issued the notice to the state after holding preliminary hearing on the petition filed by M/s Seashore Securities Limited represented by its Managing Director (MD) Prashant Kumar Dash, who is now in jail custody.
The matter has been posted for next hearing on August 2.
The Odisha Protection of Interests of Depositors (in Financial Establishment) Act of 2011 was framed with an aim to arm the state government to initiate punitive action against the alleged offenders, who have embezzled public money by floating shady financial establishments and luring the public to invest in their companies by promising huge returns in limited timeframe.
Stating that the impugned Act is oppressive, arbitrary, discriminatory and ultra vires to the Constitution and enacted in bad faith besides being totally unreasonable, the petitioner has urged the high court to strike down the impugned Act thereby declaring it as ultra vires to the Constitution.
The petitioner further prayed the high court to quash the Odisha Protection of Investors Interest Rules-2013 by declaring the same as excessive and beyond the powers of legislative as it infringes several Articles of the Constitution.