Bhubaneswar, Aug. 16: The state government will hold a meeting tomorrow to decide on how to implement the Odisha Protection of Interests of Depositors (in Financial Establishments) Bill-2011.
Home secretary Vipin Saxena, additional director-general of police B.K. Sharma and law secretary Satrughna Pujari will attend the meeting called by additional chief secretary in charge of the finance department U.N. Behera. Sources said the government was planning to open four designated courts in Bhubaneswar, Balasore, Berhampur and Sambalpur to deal with cases pertaining to the scam.
Finance minister Prasanna Acahrya said: “We expect to implement the Bill within a month. The state government will frame rules after due vetting by the law department and designated courts will be set up to deal with cases of financial fraud.”
The Bill, which received the President’s nod on August 13, will become law after it is notified by the government in the state gazette. “It’s a question of formality,” said a source.
Once the Bill becomes an act, it will empower the government to seize and confiscate properties of sham deposit collection companies and sell them. From the sale proceeds, the state government can distribute the money among the duped investors.
The government will appoint one or more experienced advocate as special public prosecutor for each of the designated courts for the purpose of conducting cases.
The government will also appoint a district magistrate or an additional district magistrate to exercise control over the properties attached by the government in their respective areas. The competent authority shall apply within 30 days to the designated court for making an interim order of attachment absolute and for a direction to sell the property and realise the sale proceeds. The investor has to open an account in any scheduled bank to get the money.
Under the new law, a person running a fraud deposit collection company can be jailed for as long as 10 years.
However, the Opposition has stuck to its demand for a CBI inquiry into the activities of these companies even after President Pranab Mukherjee gave his assent to the Bill.