Cabinet approves bill to make financial fraud on investors a non-bailable offence

CHANDIGARH: The Punjab council of ministers on Thursday decided to make fraudulent practices by financial establishments a nonbailable offence, inviting up to 10 years of imprisonment with provisions for attachment of properties too. A new bill to this effect was approved by the cabinet in a bid to safeguard the interests of depositors, said a government spokesperson.

The Punjab Protection of Interests of Depositors’ (in Financial Establishments) Bill, 2018, has been brought following several complaints of fraud received by the state government, Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI). It will now be presented to the assembly to pass before it becomes an act.

Under section 6 of it, if a finance company fails to return the deposits on due date or defrauds the public, then the promoters, managers and employees would be liable for imprisonment up to 10 years and fine of Rs 1 lakh. “The financial establishment will also be liable for a fine of Rs 2 lakh which may extend to Rs 1 crore,” the spokesman said.

Section 5 provides that all financial establishments would be required to submit quarterly return of business to the district magistrate/additional district magistrate. In case of default, the company would be liable to a fine of Rs1 lakh.

Section 3 provides for attachment of properties of the company and owners.

The bill has been brought in view of mushrooming growth of financial establishments in Punjab, with many of them making unlawful gains by way of receiving money as deposits from the public, particularly of the middle class and the poorer sections of the society.

“This is done by such companies by making impracticable or commercially unviable promises,” said the spokesman.

VILLAGE HOUSING SCHEME GETS NOD

The cabinet gave its nod to implementation of the Punjab Pendu Awaas Yojna (PPAY) to provide houses to homeless freedom fighters and rural families with annual income of less than Rs 3 lakh. The scheme will be implemented in a phased manner. All homeless freedom fighters will be covered in the first phase. A beneficiary would be given Rs 1.2 lakh by the state government, besides 90 days of labour, which would be provided to him in convergence with the MNREGA. In addition, a toilet would be constructed in the house at a cost of Rs 12,000 under the MNREGA and Swachh Bharat Mission.

HIGHER EDUCATION COUNCIL APPROVED

An ordinance for constitution of the Punjab State Higher Education Council was approved in line with the requirement of the Rashtriya

Uchchtar Shiksha Abhiyan. The council would comprise the chief minister as its chairman, higher education minister as vice-chairman, while the higher education secretary will be its member-secretary. It will also have on board vice-chancellors of state universities, principals of government colleges, and eminent personalities from the fields of arts, science, technology, culture and industry.

EX-GRATIA ENHANCED FOR LEGISLATORS

The cabinet has enhanced ex-gratia grant of MLAS from existing Rs 1 lakh to Rs 5 lakh by amending section 10A (1) of The Punjab State Legislature Members (Pension and Medical Facilities Regulation) Rules, 1984. In case of death of person serving as a member of the state assembly, an ex-gratia grant of Rs 5 lakh would be provided to the members of his/her family.