Two financial firms asked to shut shop immediately

Two financial firms asked to shut shop immediately

Assembly Mamata announces it,reiterates no one will be spared.

Assembly Mamata announces it,reiterates no one will be spared.

The state government has ordered the immediate closure of two non-financial banking institutions operating under five to six names in West Bengal. This was announced by Chief Minister Mamata Banerjee in the Assembly on Tuesday,which passed the Protection of Interest of Depositors in Financial Establishments Bill to rein in corrupt chit funds.

“We have received a list of 73 companies against whom allegations of cheating are there and out of that we have ordered closure of two companies operating with five or six names. There are 800 such corrupt companies all over India and I have asked for that list. Action will be taken against all such companies,” the Chief Minister said.

Mistakes are made,but could be rectified,she said.

Minister for corporate affairs Sachin Pilot last week announced these names.


Later talking to reporters,Mamata said that there were several companies that sprang during the time of the CPM rule. “Between 2009 and 2010,26 such companies came up. Now,the CPM is trading charges against me. Today I am happy that the Bill has been passed. We will put in all our efforts that the Bill becomes an Act soon. Nobody,whoever he or she is,will be spared,” she said.

Earlier speaking in the House,Mamata said that she had all the intention to return the money to the investors who are poor people. “I myself spoke to the President (Pranab Mukherjee) so that we get the Bill back. We want to stand by the poor and hapless people,” she said.

However,she also sought to blame the Centre for the chit fund scam,and claimed that the central government reduced the rate of interest in small savings to drive depositors towards ponzi schemes.

In an article in the latest issue of the weekly ‘Ma,Mati Manush’,the Chief Minister wrote: “It is because the Centre has reduced the interest rates in small savings in the post office,poor people and those who have retired keep their money in these chit funds with the hope of getting a little higher interest,” “Not only the Centre has reduced interest,it has also reduced the commission for agents of small savings in post-offices. This is also a contributory factor behind the thriving of chit funds,” Banerjee,the Trinamool Congress supremo,said.

In a directive to her partymen,she said,the people have to be convinced that the alleged chit fund scam by the Saradha Group thrived because of the indulgence of the Congress and the CPM.

“It has to be remembered that there is bound to be grievances if the hard-earned money of the people is defrauded. But the people have to be convinced that the Congress and the CPM are behind those who are engaged in this fraud. A campaign has to be taken to the people that the Ma,Mati,Manush government is in no way responsible for it,” Banerjee said.

“I am asking all our party MPs,MLAs,ministers,workers and supporters that a campaign has to be launched to convince the people that chit funds have mushroomed due to encouragement of the CPM and the Congress and there should not be any laxity in this regard,” she said.

She said under the present laws,the Centre issued licence for operating chit funds,a power which the state did not have.