As suggested by the Centre, the West Bengal government on Thursday, gave more teeth to The West Bengal Protection of Interest of Depositors in Financial Establishments Bill 2013.

The bill is aimed at illegal money collection companies.

As per the West Bengal Protection of Interest of Depositors in Financial Establishments (Amendment) Bill 2015, failure of payment by deposit taking companies will be a non-bailable offence. Anticipatory bail too will not be granted.

The amendments will also help enacting the 2013 bill.

The bill received Presidential assent on condition of amendment to section 22 so that it does not stand in conflict with “any other law for the time being in force”.

“There were six suggestions by the Union Home Ministry of which five have been accepted. This includes insertion of a new section that disallows a defaulter (deposit taking company) from seeking anticipatory bail,” Amit Mitra, State Finance Minister, said in the Assembly.

Bill passage

This is the third time in four years (of Mamata Banerjee’s tenure) that the Bill was brought before the State Assembly.

The original Bill was passed in 2013 in the wake of the Saradha scam that saw thousands of depositors being defrauded in West Bengal.

Presidential assent, received earlier this year, was subject to riders based on which today’s amendments were made.

When the Left Front, was in power here, it had twice attempted – in 2003 and 2008 – to bring in a similar legislation for regulation of illegal deposit-taking companies. In both cases, the Bills were disallowed citing technical reasons.

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