Bill protecting the investor’s interest from fraudulent financial institutions tabled in Goa assembly

financial institutions

A bill that provides protection to the interests of the investors from financial institutions that defraud them was introduced in the legislative assembly by the Goa government yesterday. The bill seeks to fix liability on people involved in the institutes that commit fraud on its depositors.

Goa Protection of Interests of Depositors (In Financial Establishments) (Amendment) Bill-2017, was introduced by Chief Minister Manohar Parrikar in the legislative assembly.

The bill will make the manager, partner, promoter, director, or any employee of a financial establishment liable in case the establishment commits a fraud by defaulting on paying its depositors. To achieve this, it 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, realisation of property in respect of fraudulent financial establishments,” the bill reads. To make offences under the Act cognizable, the bill has added section 13-A, which is new.

Under the bill, the reports and returns of the financial institutions will have to be filed with 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.

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