Bhubaneswar: A bill was tabled in the Assembly on Wednesday in order to protect the interests of the depositors in non-banking financial institutions.

Piloting the Odisha Protection of Interests of the Depositors (in Financial Establishments) Bill, 2011, Finance Minister Prafulla Ghadai said that the proposed legislation will help depositors in curbing the illegal activities of unfair non-banking financial companies (NBFCs) and the organisations not registered under the Companies Act and will protect the interests of the depositors.

“Inspite of posing regulatory, supervisory and prohibitory actions by the Reserve Bank of India, the illegal practices by many unfair non-banking financial organisations are increasing in the State. People are falling prey to the NBFCs in many areas of the State without a banking facilities. Balasore chit fund case is a best example of this type”, Ghadai said.

A legislation is required to safeguard the interest of the depositors against these NBFCs and unincorporated bodies, said Ghadai.

Under the proposed law, the Government can protect the depositors on filing a complaint receipt with passing appropriate order to attach the money or property of the establishment. If the property or attached money is not sufficient to repay the depositor then property of the promoters, directors, partners, managers or member of the company will be attached and for this the Government will appoint a district magistrate, or an additional district magistrate to control the whole, Ghadai informed.