Karnataka - Shimoga   

Depositors block road seeking legal protection

Special Correspondent

RBI, Company Law Board accused of being ineffective

TO SAFEGUARD DEPOSITS: Members of the Depositors' Association staging a rasta roko in Shimoga on Tuesday.

SHIMOGA: Members of the Depositors' Association staged a rasta roko at the Ashok Circle near the bus stand here on Tuesday demanding that legal protection be ensured to their deposits made in private companies.

They said over 40,000 companies had duped people of crores of rupees since independence in the country which was possible because of the ineffective role being played by the Reserve Bank of India and the Company Law Board in protecting the interests of depositors.

They demanded that a law be introduced to protect the interests of depositors and suggested that a legal provision on the lines of the Securitisation Act enacted to enable banks to deal with non performing assets be extended to private companies too as they were finding it difficult to recover loan given by them to return deposits on their maturity.

The president of the State Depositors' Association, Ananthram, said protests against the Karnataka Financial Services, Viniv Inc, Darshanik Foundation, Yoga Foundation and Monarc would be intensified.

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