West Bengal government plans legislation to protect depositors

Kolkata: The West Bengal state government is planning legislation to protect the interest of depositors in financial establishments.

Under the proposed bill, which has now been referred to the Standing Committee on Economic Affairs of the State Legislative Assembly, every employee of a fraudulent financial establishment from the promoter to the staff will be made liable for any unscrupulous activity of the establishment.

Explaining the rationale behind this new legislation, the state finance department said the middle and the poorer sections of the society have been caught at the wrong end of the mushrooming growth of financial establishments in the state.

The financial establishments have raised money from the public by making unviable promises of high returns, with little intention of redeeming on the promises or even returning amounts on maturity.