Tripura cabinet approves central law banning unregulated deposits

Agartal: The Tripura cabinet on Tuesday approved the rules of central government enacted the “Unregulated Depository Schemes Prohibition Act of 2019” as the “Tripura Prohibiting Unregulated Depository Schemes” replacing the former state law in effect, Minister of Law and Business parliamentarians Ratan Lal Nath said in the cabinet briefing.

Nath said, “There was a state law named after Tripura Protection of Depositors’ Interests, under which criminal penalties were imposed on accused violators of bond funds. By approving the rules of the central act, the state government has clarified its position on a strict view towards these unregulated non-banking financial companies.

According to Nath, since the central government made a stricter law in 2019, there is no use of the law that was in force before. Justifying his statement, Nath said, “Under the previous law, the assistant receiver had been in charge of the official execution, while in the central law, the finance secretary was the guardian of the execution. This means that the act is stricter than the previous one. Apart from this, the new law provides for criminal penalties ranging from a minimum of one year to a maximum of ten years with a minimum penalty of Rs 2 lakh to 10 lakh.

The Minister of Justice also said that the state government had been authorized by the Court to seize the assets of 20 of these financial institutions formerly operating in the state.

“A total of 66 properties have been seized and a process has been initiated to sell 34 of them. But, due to the Covid situation, it could not be completed in time,” he said. declared.

Nath said the government has also received claims from 15,206 depositors deceived by such companies in eight sub-divisions of the state.

“The state government has also acquired such a disputed property near the international borders at Sabroom under South Tripura for which the government paid just over Rs 36 lakh. The integrated checkpoint to be built at Sabroom is proposed on this property. It was owned by Waris Finance and Investment Limited,” he added.

Nath specified that after seizure of all these goods, the depositors will be compensated taking into account their claims.

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