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Laws protecting depositors' interests needed

Staff Reporter

BERHAMPUR: Orissa lacks laws to protect interests of depositors in non-banking private financial establishments. Depositors who are cheated by financial institutions are running from pillar to post to recover their deposits in the absence of comprehensive laws.

Basank Kumar Nepak, an advocate of a group of depositors of a financial company - Jiban Bikash - that was liquidated by the Reserve Bank of India says that in Tamil Nadu and Andhra Pradesh the governments enacted legislations to protect the interests of depositors in private financial establishments. But it is yet to happen in Orissa.

As per the rules of the RBI, all depositors should get back their money within two years of winding up of a company.

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