Rules approved to safeguard depositors’ interests

cities Updated: Jun 01, 2017 17:16 IST

The Haryana cabinet on Thursday approved rules for implementation of the Haryana Protection of Interest of Depositors (in Financial Establishment) Act, 2013.

The main purpose of the rules is to facilitate implementation of the act under which it will be ensured that depositors are not duped by different fraudulent practices and schemes by different financial companies. The act provides for penal provisions for promoters of financial establishment defaulting in repayment of deposits and interest to the depositors.

Every financial establishment that commenced or carried on its business in the state on the date of notification of these rules will have to submit a report to the district magistrate and the superintendent of police of the district in a particular form within a period of 15 days.

In case of a complaint, the competent authority will examine the complainant and the witnesses, if any, or any person or office-bearer or employee of financial establishment who, in his opinion, will be able to give any information about the financial establishment in respect of which an order of attachment had been made by district magistrate and examination will be recorded in writing. On receiving a complaint, the district magistrate will forward it to the government within a period of one month.

First Published: Jun 01, 2017 17:16 IST