A parliamentary panel on banning unregulated deposit schemes has given the State government seven days to make changes to provisions in a proposed law.
Racing against time to submit its report in the next Lok Sabha session, the Parliamentary Standing Committee on the Banning of Unregulated Deposit Schemes Bill, 2018, has asked the State to reconsider its suggestion of appointing the deputy collector of the Revenue Department as the ‘competent authority’. The panel is believed to have conveyed to the government that the collector with his busy schedule may not be able to deliver justice in cases adjudicated under the proposed law.
The provisions of the Bill make it mandatory for States to designate a competent authority to ensure defaulting establishments repay the deposits. The powers and functions of the authority include attaching assets of a defaulting establishment.
State drafting response
An official in the Home Department said, “The Maharashtra Director General of Police is in the process of drafting a response to the committee. The panel is of the opinion we must change the competent authority, while agencies and banks must look at issues concerning bitcoin and cryptocurrency as part of the legislation. Consultations were held with the Reserve Bank of India in this regard.”
Earlier this year, the Union Cabinet chaired by the Prime Minister gave its nod to introduce the Bill, which aims to tackle illicit deposit-taking schemes. Companies and institutions running such schemes dupe people by exploiting existing regulatory gaps and lack of strict administrative measures.
The Bill adopts best practices from State laws, while entrusting the primary responsibility of implementing the provisions to State governments. Additional Chief Secretary (Home) Sunil Porwal said, “They have overall given a positive assessment of the ground work done by Maharashtra. But keeping in mind the large number of cases reported in the State, the panel wants us to tighten the provisions further.”
The panel was entrusted with preparing a report after the Bill was introduced in the Lok Sabha in July. It has to prepare the final report in three months and present it before the Parliament in the winter session.