Tripura Cabinet Approves Central Law Against Voucher Funds

  • Abhijit Nath, NET Correspondent, Tripura

Agartala, 13th July 2022: The Tripura Council of Ministers passed in a meeting on Tuesday the “Tripura Ban on Unregulated Depository Systems” following the “Prohibition of Unregulated Depository Systems Act 2019 unregulated deposit” framed by the central government and repealed the previous state law in force, said the Minister of Law and Parliamentary Affairs, Ratanlal Nath.

“The previous government enforced Tripura Protection of Depositors Interests in 2000 through which criminal penalties were imposed on accused violators of Chit Funds. The state government has cleared its position to take tough action against these unregulated non-banking financial companies by approving the central law rules,” Nath said while announcing the cabinet decision taken in a meeting. under the chairmanship of the Chief Minister, Dr. Manik Saha, at a press conference at the Civil Secretariat here on Tuesday evening.

He said: “There is no use of the law which was in force before as the central government enacted a stricter law in 2019.”

Citing a rationale in view of his statement, the Minister for Law and Parliamentary Affairs said: “The Assistant Collector was put in charge of the Enforcement Officer in accordance with the previous Act while the Custodian of the Enforcement of the central law was entrusted to the Secretary of the Ministry of Finance. . This revealed significantly that the current rules are much stricter than the previous ones. Moreover, the new law provides for criminal penalties ranging from a minimum of one year to a maximum of 10 years with a minimum penalty of Rs 2 lakh to Rs 10 lakh.

Nath said, “The court allowed the state government to seize the properties of 20 NBFCs, these were once functional in Tripura. Following the court order, a total of 66 properties were seized and proceedings were initiated to sell 34 of them. However, the process could not be completed in time due to the COVID pandemic.

Speaking to the media, Nath said that nearly 15,206 depositors submitted their claims to the state government, who were cheated by such financial companies in eight sub-divisions like Udaipur, Belonia, Sadar, Santirbazar, Kumarghat , Sabroom, etc. Among these, a disputed property near the India-Bangladesh international border at Sabroom in South Tripura district has been acquired by the state government. The integrated checkpoint to be built at Sabroom is proposed on this property. It belonged to Waris Finance and Investment Limited. Depositors will be compensated after seizure of these assets.

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