Patna, July 27: The cabinet today made it mandatory for non-banking financial companies to take permission from the district magistrate concerned to operate in the area.

It brought an amendment to the Bihar Protection of Interest of Depositors Act, 2002. Sources said the amendment, to be tabled during the Assembly’s current monsoon session, would force non-banking financial companies to take no-objection certificates from the superintendent of police of the district concerned. It empowers DMs to carry out search, seizure and inquiry in case of any irregularities relating to these companies.

According to the provisions, the depositor too can lodge a complaint before the sub-divisional officer against the non-banking financial company in case of irregularities. The officer can impose a fine of up to Rs 1 lakh on the company, if it is found violating any of the prescribed rules.

On May 2, then state finance minister Sushil Kumar Modi had held a meeting with senior state officials and those from Reserve Bank of India, Securities and Exchange Board of India (Sebi) and Economic Offences Unit, following the collapse of the Calcutta-based Saradha group. The government had then said there were no non-banking financial companies operating in Bihar.

In an Id bonanza to teaching and non-teaching employees of 1,128 non-government madrasas, the cabinet sanctioned Rs 80 crore as grant for their salary for the 2013-14 financial year. The government has released 50 per cent of the grant for payment of six months’ salaries of the employees.

The cabinet also gave its nod to a proposal to bring an amendment to the Land Dispute Redressal Act, which stipulates a time limitation for disposal of cases within a period of 30 days by the authority concerned, sources said.