Bill to protect people from fraudulent intention of financial

The Meghalaya Assembly Friday introduced the Meghalaya Protection of Interest of Depositors (in Financial Establishments) Bill, 2018 to protect the public from any fraudulent intention of financial institutions.

Introducing the bill during the first day of the Autumn session, Chief Minister Conrad K Sangma, in a statement said, it has become necessary to have a strong law in the state in order to protect the interest of the depositors in financial institutions operating in the state.

"(This is) considering the fact that some of these financial institutions are unauthorised and mobilising funds from the public/depositors with suspect or fraudulent intention," Sangma said.

The chief minister also pointed out that the objective of introducing the new bill was because the existing Act is not equipped to deal with such institutions.

"Since the present law, that is, the Meghalaya Protection of Interest of Depositors (in Financial Institutions) Act, 2006 is not fully equipped in dealing with such institutions, therefore, there is a need to repeal the existing Act with a new Act. Hence this bill," he stated.

According to the bill, the government may pass an ad-interim order attaching the properties purchased either in the name of the financial establishment or any other persons on default of return of deposits.

It also stated that where any financial establishment defaults, the return of the deposit or defaults the payment of interest on the deposit, every person including the promoter, manager, director or partner or an employee of the financial establishment will be punished with imprisonment for a term which may extend to ten years and with fine which may extend to Rs 1 lakh or both.

Such financial establishment shall also be liable for a fine which may extend to Rs 2 lakh, it added.

The bill further makes it mandatory for every financial establishment which commences or carries on its business in the state of Meghalaya on or after the commencement of this Act, to submit a report relating to the details about its authority to the district collector and superintendent of police (SP).

Any person or public in general aggrieved against any financial establishment receiving deposits from public may also file a complaint in writing specifically mentioning the nature of allegations against the financial establishment to the deputy commissioner or office not below the rank of the Superintendent of Police, CID for causing inquiry and investigation.

Meanwhile, the state government would also constitute special courts for the purpose of speedy disposal of cases under the Act.

According to the chief minister, the financial expenditure will be involved from the consolidated fund of the state for implementing the provisions of the proposed legislation on account of creation of special court, special public prosecutor and such other connected matters.

Another bill, the Meghalaya Essential Services Maintenance (Amendment) Bill, 2018 and the Meghalaya Societies Registration (Amendment) Bill, 2018 was also introduced during the session.

Sangma also presented the supplementary demands for grants and supplementary appropriation for the year 2018-19.

Meanwhile, Assembly Speaker Donkupar Roy welcomed Chief Minister Conrad K Sangma and three other newly elected MLAs during the first day of their attendance as members of the Assembly.

Sangma had won the South Tura by-election recently.

The others MLAs are opposition Congress legislator from Ampati Miani D Shira, United Democratic Party (UDP) MLA from Ranikor Pius Marwein and National Peoples Party (NPP) MLA from Williamnagar Marcuise N Marak.

The chief minister also commented the Speaker for his initiative to telecast the proceedings of the Assemblys current session live.

"It is a wonderful initiative and I think people of Shillong will be very happy," Conrad said.