CM writes to Union Min for expediting Presidential assent to Bill

Bhubaneswar: Concerned over investors in the state getting defrauded by money pooling chit funds, Odisha chief minister Naveen Patnaik on Monday urged Union Home minister Sushil Kumar Shinde to take steps for expediting the Presidential assent to the Odisha Protection of Interest of Depositors (in Financial Establishment) Bill, 2011.
 
In a letter sent to Shinde, the chief minister said, "In view of the urgency, I am drawing your personal attention for expediting the Presidential Assent to the Odisha Protection of Interest of Depositors (in Financial Establishment) Bill so that we (the state) can firmly and effectively deal with the frauds being perpetrated by unscrupulous financial establishments," he said.
 
The Bill contains extensive safeguards to protect the small investors from the malpractices of fraudulent financial entities, he added.
 
The legislation, which aims to protect the interest of depositors in non-banking financial companies (NBFCs) and un-incorporated bodies (UIBs), was passed by the Assembly in December 2011 and sent for Presidential assent in June 2012.
 
However, clarifications were sought from the State government a month ago and the necessary feedbacks were sent.
 
Sources said nearly 7 lakh investors in the state are duped of about Rs 20,000 crore by various operators. At least three dozens of such companies including Saradha group, Seashore group, AT group, Rose Valley group, Flourish India, Micro Finance group are operating in Odisha.